Monetary Policy and an Expansionary Gap Suppose the Fedwishes to use monetary po

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.