Which best explains why the money supply is increased when the fed buys t-bonds on the open market? the purchase of bonds reduces the available supply of bonds, which drives up bond prices. the purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money. the purchase of bonds leads to a reduction in the discount rate, which provides banks with an incentive to loan more money. the purchase of bonds increases the demand both for bonds purchases and for money in general.

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?