The Federal Reserve announces they will follow a contractionary, or tighter, monetary policy to fight inflation. treasury bill with a yield of .85% treasury bill with a yield of 5% 10-year U.S. government bond with a yield of 9% 30-year U.S. government bond with a yield of 9.5% The Federal Reserve announces they will embark on an expansionary, or easy, monetary policy to fight deflation. Answer Bank 10-year U.S. government bond with a yield of 5% 30-year U.S. government bond with a yield of 16%