Which of the Following Effects Is Seen on the Money

Which of the following effects is seen on the money supply and the economy when the Federal Reserve Board restricts credit controls?

A) More people are encouraged to make major purchases,increasing economic activity.
B) Banks make fewer loans; the money supply declines; economic activity slows down.
C) Banks make more loans; the money supply increases; economic activity increases.
D) Interest rates increase; the money supply decreases; economic activity slows down.
E) People are discouraged from making major purchases,decreasing economic activity.