Which tool(s) of monetary policy would the Federal Reserve use if it wanted to increase the money supply? a. open market operations
b. quantitative easing
c. reserve requirements and the discount rate
d. all of the above

d. all of the above

Explanation:

If the Federal Reserve wanted to increase the money supply, they could use all the monetary policy tools listed.

Using Open Market operations, they could buy securities from the public and by paying for those securities, they would inject money into the economy. This is how Quantitative Easing works as well.

They would also reduce the reserve requirement or reduce the discount rate as well. The former would allow banks to be able to loan out more money and the latter will make it easier for banks to borrow from the Fed both of which will increase how much banks can inject into the economy.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20