1. Decreasing the reserve requirement should lead to _______________________ in the money supply

2. Cash withdrawals from banks _______________________ the reserves of banks

3. An increase in the target federal funds rate suggests that short term interest rates will ______________

4. Inflation is a general increase in prices, deflation is a general ________________ in prices

5. To fight inflation, the Federal Reserve ____________________ the money supply

6. To expand the economy the Federal Reserve purchases securities which _____________ liquidity and ________________ the supply of money.

7. A recession is associated with a ___________________ in the rate of employment.

8. The federal reservess quantitative easing _______________________ interest rates.

9. Changes in stock prices ________________________ the supply of money.