Select the correct answer from each drop-down menu.
how does the federal reserve reduce the money supply in the economy? using monetary policy, the federal reserve increases to reduce the money supply in the economy. Using____monetary policy, the federal reserve increases____to reduce the money supply in the economy.
blank #1 options-
a. contractionary
b. expansionary
c. flexible
blank #2 options-
a. gold reserves
b. interest rates
c. spending