D Question 12 12 pts Fill in the blanks using the number that corresponds to the correct answer in the word bank below: 1. Decrease 2. increase 3. right 4. left 5. Discount rate 6. Federal funds rate 7. Open market operations When the Federal Open Market Committee (FOMC) directs the Federal Reserve bank of New York to buy or sell bonds it is conducting The interest rate that the Fed charges banks on loans it makes to them is called the The interest rate that banks pay one another when they borrow overnight is called A tight monetary policy entails a in money supply An easy monetary policy entails a in money supply When the Fed buys government securities interest rates If the Fed institutes a policy to reduce inflation, interest rates will most likely During a recession, the objective of the Fed is to shift the money supply curve to the During inflation the objective of the Fed is to shift the money supply curve to the An increase in money supply will interest rates During a recession the Fed will the discount rate During inflation the Fed will the reserve ratio