A decrease in the reserve requirement will cause a decrease in the money multiplier.

Which of the following should be increased during an expansion?

A) Government spending B) Unemployment C) Inflation D) Tax rates

When the Fed attempts to increase real GDP and employment by ________ its target for the federal funds rate, it is conducting ________ monetary policy

A) raising; expansionary B) raising; contractionary C) lowering; expansionary D) lowering; contractionary