Think about the two types of monetary policy: expansionary and contractionary. Using what you have learned about open market operations, determine whether the noted actions below coincide with expansionary monetary policy or contractionary monetary policy. In a few sentences explain how.

Action: Government securities are sold by the Fed.

a)Expansionary

b)Contractionary

Action: The federal funds rate decreases.

a)Expansionary

b)Contractionary

Action: The money supply increases.

a) Expansionary

b) contractionary