6. Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 20%. If the Fed buys $10 million worth of government securities to the public, the change in the money supply will be

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.

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