Final answer:
A. Easy money policy is being pursued when required reserves are decreased. B. Tight money policy is being pursued when required reserves are increased. C. Neither is true when we all received raises, the Treasury prints more dollar bills, the Fed is selling Treasuries on the open market, or the discount rate is decreased and the Fed is buying Treasuries on the open market.
Step-by-step explanation:
A. Easy money policy is being pursued when required reserves are decreased.
B. Tight money policy is being pursued when required reserves are increased.
C. Neither is true when we all received raises, the Treasury prints more dollar bills, the Fed is selling Treasuries on the open market, or the discount rate is decreased and the Fed is buying Treasuries on the open market.