8. To consistently and aggressively combat inflation like Paul Volcker did in 1980, the Fed might: a. increase the reserve requirement and the discount rate and buy bonds on the open market b. increase the reserve requirement and the discount rate and sell bonds on the open market c. decrease the reserve requirement and the discount rate and buy bonds on the open market d. decrease the reserve requirement and the discount rate and sell bonds on the open market e. decrease the reserve requirement, increase the discount rate, and buy bonds on the open market 14. To fight a recession, the Fed might: a. increase the reserve requirement and the discount rate b. buy bonds in the open market and decrease the discount rate c. increase the reserve requirement and decrease the discount rate d. decrease the reserve requirement and increase the discount rate e. sell bonds on the open market 6. If a bank has $1.5 million in reserves and checking deposits of $4 million, what is the bank's reserve position if the required reserve ratio is 20 percent? a. the bank has $300,000 of required reserves and $1,200,000 of excess reserves b. the bank has $300,000 of required reserves and $3,700,000 of excess reserves c. the bank has $800,000 of required reserves and $700,000 of excess reserves d. the bank has $800,000 of required reserves and $3,200,000 of excess reserves