What Does This Mean? And How Do I Answer It?

One way the Federal Reserve System seeks to influence money supply in the U.S. is by setting the reserve requirement for banks. The reserve requirement is the percentage of deposits banks must keep on reserve and not lend out. Considering that the inflation rate rose significantly from 1976 to 1980, identify changes that the Federal Reserve System could have made in the reserve requirement and with monetary policy that could have reversed this trend. Evaluate the expected impact that your decision would have on consumer and business spending, and also Gross Domestic Product.