You get to choose your own monetary policy adventure!

Assume that the economy is either expanding or contracting. You will discuss how to respond to this situation in the following prompts, so choose wisely. This is your decision, so please explain what is going on with the economy you are pretending to monitor.
Would you use expansionary or contractionary monetary policy to stimulate the economy?
Why would you use the policy mentioned in 2 above (i.e. what are you attempting to influence or prevent)?
What changes to reserve requirements, the discount rate, and open market operations could you make to help you pursue a policy that is appropriate for the economy’s current situation?
How will the changes mentioned in 4 benefit the economy? In other words, how will the changes you want to implement result in real people making different decisions that will ultimately benefit the economy as a whole? You should probably mention how the money market is affected, how interest rates may change, how people react to interest rate changes, and how this behavioral change in many people can affect the overall economy.