John makes it a point to save a portion of his salary every month. Assuming all else equal, if the real interest rate increases, it is likely to cause:
A) a downward movement along John's credit supply curve.
B) John's credit supply curve to shift to the left.
C) John's credit supply curve to shift to the right.
D) an upward movement along John's credit supply curve.
Question 2
Open market operations refer to the Fed's transactions with ________.
A) households B) private banks C) state governments D) firms
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