drag each label to the correct location. classify each action as contractionary or expansionary monetary…

Brief Explanations:

Contractionary monetary policy aims to reduce the money - supply and slow economic growth. Expansionary monetary policy aims to increase the money - supply and stimulate economic growth. Increasing the discount rate makes it more expensive for banks to borrow from the central bank, reducing the money supply (contractionary). Reducing the required reserve ratio allows banks to lend more, increasing the money supply (expansionary). Reducing the federal funds rate makes it cheaper for banks to borrow from each other, increasing lending and the money supply (expansionary). Selling government securities by the central bank takes money out of the economy, reducing the money supply (contractionary).

Answer:

Contractionary Monetary Policy: increasing the discount rate, selling government securities Expansionary Monetary Policy: reducing the required reserve ratio, reducing the federal funds rate