Generally speaking, when the economy is doing well, then what will be the "normal and commonsense" monetary policy of the Federal Reserve Bank?
A. The Fed will start to buy gold.
B. The Fed will buy bonds to increase the money supply even more.
C. The Fed will sell the bonds, allow loan interest rates to rise, and maybe they will try to return to a Ms = GDP monetary policy.
D. The Fed will increase the amount of electronic money to banks in order to stimulate the economy even more.