If the Fed reduces the supply of bank reserves, ________. A) ...

[armygirl]

If the Fed reduces the supply of bank reserves, ________.
 
  A) investment increases B) consumption increases
  C) the federal funds rate increases D) the federal funds rate falls

Question 2

Assuming all else equal, an increase in the real interest rate will cause:
 
  A) a leftward shift of the credit supply curve.
  B) a rightward shift of the credit supply curve.
  C) a downward movement along the credit supply curve.
  D) an upward movement along the credit supply curve.

[taylorsonier]

Answer to Question 1

C

Answer to Question 2

D