28. If the demand for money increases and the Fed wants interest rates to remain unchanged, which of the following would be appropriate policy? A. recall Federal Reserve Notes 'om circulation B. raise the legal reserve requirement C. buy bonds in the open market D. raise the discount rate 29. A Federal Reserve ofcial notes: "A restrictive monetary policy can force a contraction of the money supply, but an expansionary monetary policy may not achieve an expansion of the economy." The official has described the problem of the: A. Inexibility of monetary policy tools B. Change in taxes on monetary policy C. Cyclical asymmetry of monetary policy D. Political acceptability of monetary policy 30. In a full-employment economy an increase in M will cause ination unless: A. Vrises in proportion to the increase in M. B. the quantity of goods produced declines proportionately. C. tax reductions accompany the increase in the money supply. D. the velocity of money diminishes. E. None of the above