1. Fill in the boxes. The first column is the monetary policy components the Fed could use, and their direction. The second and third columns is whether the scenario would increase or decrease the money supply. Put an X in the appropriate box for each tool. Monetary Policy I Scenario F A. The Fed increases the Reserve Requirement Ratio. B. The Fed decreases the Discount Interest Rate. C. The Fed engages in Open-market purchases. (lowering the Federal Fuds Interest Rate). D. The Fed increases the Discount Interest Rate. E. The Fed engages in Open-market sales (raising the Federal Fuds Interest Rate). F. The Fed decreases the Reserve Requirement Ratio. Increase in the Money Supply Decrease in the Money Supply