If the Federal Reserve wished to engage in contractionary monetary policy it could

Question

Quizplus · Accepted Answer

All of the options mentioned would lead to a contractionary monetary policy. 
Increasing the primary credit rate would make it more expensive for banks to borrow from the Federal Reserve, reducing the amount of money in circulation.
Selling government debt would decrease the amount of money in circulation as investors would need to pay for the bonds.
Increasing the reserve ratio would require banks to hold a higher percentage of reserves, reducing the amount of money they can lend out.

If the Federal Reserve Wished to Engage in Contractionary Monetary