Can I get an Original answer

The most widely used tool of the Federal Reserve is the open market operations, in which the Fed buys or sells bonds for the Fed's account. Buying securities increases the money supply; selling securities decreases the money supply. Open market operations occur daily. Other Federal Reserve tools include adjusting the discount rate, which is the interest rate the Fed charges banks on short-term loans, and altering reserve requirements, which are the fraction of deposits that banks must maintain in cash deposits with the Fed. Increases in the money supply signal an expansionary monetary policy; lowering reserve requirements increase the money supply and, thus, stimulate the economy. The Fed walks a fine line: expansionary monetary policy probably will lower interest rates and stimulate investment and consumption in the short run.

Question to the class at large: Would you agree or disagree that in either case, inflation will most likely be the ultimate outcome? Why or why not?