Imagine working at the Trading Desk at the New York Fed. Explain whether you would conduct open

Question:

Imagine working at the Trading Desk at the New York Fed. Explain whether you would conduct open market purchases or sales in response to each of the following events. Justify your recommendation.
a. The latest FOMC Directive calls for an increase in the target value of the federal funds rate.
b. For a reason unrelated to monetary policy, the Fed's Board of Governors has decided to raise the differential between the and the federal funds rate. Nevertheless, the FOMC Directive calls for maintaining the present federal funds rate target.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...