C Online My Courses This Course Student Services HFC Online Video Tutorials Macroeconomic policy For each action in the list below, categorize the policies as either expansionary (boosting the economy) or contractionary It of (shrinking the economy) and as either monetary or fiscal. Some of the items in the list below are not correct and do not belong in any of the categories. None of the items in the list below belong in more than one of the categories. 1. The Fed cuts the Fed funds rate 2. The government raises income tax rates 3. The Fed sells bonds in the open market 4. The government raises interest rates 5. The Fed increases its spending 6. The Fed increases the interest rate paid on reserve This is expansionary monetary policy 7. The government increases its spending This is expansionary fiscal policy This is contractionary monetary policy 8. The Fed increases the discount rate This is contractionary fiscal policy This is not correct and does not belong in any category above 9. The Fed buys US government securities in the open market 10. The Fed cuts corporate tax rates