If a central bank such as the US Federal Reserve observes an inflationary gap, then an appropriate monetary policy response might be for the Federal Reserve to instruct member banks to:

If a central bank such as the US Federal Reserve observes an inationary gap, then an appropriate monetary policy response might be for the Federal Reserve to instruct member banks to: O sell bonds thereby increasing the money supply. 0 buy bonds thereby increasing the money supply. 0 sell bonds thereby decreasing the money supply. 0 buy bonds thereby decreasing the money supply