22) If the Fed pursues expansionary monetary policy then the money supply will increase/decrease, interest rates will rise/fall and GDP will rise/fall. 23) If the Fed lowers its target for the federal mds rate, this indicates that the Fed is pursuing an expansionary/contractionary monetary policy. 24) If the Fed pursues expansionary monetary policy, aggregate demand will rise/fall, and the price level will rise/fall. 25) If the Fed's policy is contractionary, it will use open market operations to buy/sell Treasury bills