The effect on the market for loans of an increase in both the reserve requirement and the Fed's purchase of securities on the open market would be shown by the movement from S1 to S2 in:
A) Figure C.
B) Figure D.
C) Figure C and Figure D, respectively.
D) Figure D and Figure C, respectively.

Question

Quizplus · Accepted Answer

The Answer of The effect on the market for loans of an increase in both the reserve requirement and the Fed's purchase of securities on the open market would be shown by the movement from S1 to S2 in:
A) Figure C.
B) Figure D.
C) Figure C and Figure D, respectively.
D) Figure D and Figure C, respectively.

The Effect on the Market for Loans of an Increase