Reference no: EM131426692

Classify each of the following monetary policies as expansionary or contractionary. a) The Central Bank of England has recently decided to raise reserve requirementson deposits below GBP 500K from 10% to 11%. b) The Central Bank of Mexico (Banca de Mejico) has recently engaged in an openmarket sale of Mexican government bonds of 5billion pesos. c) The Central Bank of Argentina (Banco de la Republica Argentina-BCRA) hasrecently decided to increase the rate at which commercial banks can borrow fromthe BCRA from 15% to 20%. d) The Central Bank of Indonesia has recently decided to raise the minimum amountthat commercial banks need to hold in the central bank's vaults. e) The Bank of Japan has recently decided to buy 100 million yen worth of US Treasuries from the Japanese banking sector, and to pay for them using Japanesegovernment bonds.