Monetary Policy and an Expansionary Gap Suppose the Fedwishes to use monetary policy to close an expansionarygap.a. Should the Fed increase or decrease the moneysupply?b. If the Fed uses open-market operations should it buy orsell government securitiesc. Determine whether each of the followingincreasesdecreases or remains unchanged in the short run: the marketinterest rate the quantity of money demanded investment spendingaggregate demand potential output theprice level and equilibrium real GDP.