Which of the following tools can the Fed use to contract the money supply? To expand the money supply?

The Fed can use four tools to achieve its monetary policy goals: the discount rate, reserve requirements, open market operations, and interest on reserves. All four affect the amount of funds in the banking system. The discount rate is the interest rate Reserve Banks charge commercial banks for short-term loans.

$900 and $1,077.50.

Explanation:

The computation of the Nominal GDP for year 1 and the year 2 is shown below:

Nominal GDP for year 1:

= Number of golf balls × selling price + Number of pizzas × selling price

= 100 golf balls × $3 + 75 pizzas × $8

= $300 + $600

= $900

Nominal GDP for year 2:

= Number of golf balls × selling price + Number of pizzas × selling price

= 110 golf balls × $3.25 + 80 pizzas × $9

= $357.50 + $720

= $1077.50