Suppose the Federal Reserve (Fed) decides the current money supply of $ 2.1 $2.1 trillion is too low, and that an increase of $ 400 400 billion is necessary. What tool can the Fed use to accomplish this increase? Assume the current reserve ratio is 0.1 0.1 . Sell government securities. Buy government securities. Increase the interest paid on bank reserves. Increase the reserve ratio. Calculate the change in reserves necessary to achieve the $ 400 400 billion increase. $ billion

Arguments made against free trade include all of the following exceptdumping is an unfair trade practice that puts domestic producers of substitute goods at a disadvantage that they should be protected against. national defense considerations justify producing certain goods domestically whether the country has a comparative advantage in their production or not. free trade is inflationary and should be restricted in the domestic interest. if foreign governments subsidize their exports, foreign firms that export are given an unfair advantage that domestic producers should be protected against. infant industries should be protected from free trade so that they may have time to develop and compete on an even basis with older, more established foreign industries.