Defensive open market transactions are aimed at achieving changes in monetary policy. are used much less frequently than dynamic open market transactions. are used to offset disturbance to the supply or demand for reserves. make it easy to deduce the Fed's intentions for monetary policy. Expansionary monetary policy consists of all the following EXCEPT open market sales. lower interest rates. increased monetary base. increased money supply. According to Taylor's rule, at of the following variable help explain the behavior of the federal funds rate EXCEPT output gap. current inflation inflation gap. yield curve. If the FOMC's directive indicates a change in monetary policy the account manager at the Fed's Open Market Tracing Desk must design dynamic open market operations. design defensive open market operations. seek approval of the charge from the Secretary of the Treasury. seek approval of the change from a majority of the presidents of the Federal Reserve district banks. In the federal funds market diagram a decrease in the required reserve ratio shifts the demand curve for reserves to the left. increases the federal funds rate. results in a multiple expansion of deposits which increases the equilibrium level of reserves held by banks. shifts the supply curve for reserves to the right