Which the effect on interest rates and the amount of loans

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Problem 1: The effect on interest rates and the amount of loans made caused by a drop in a bank's required reserves is shown by the movement from:

Select one:
a. D1 to D2 in Figure A.
b. D1 to D2 in Figure B.
c. S1 to S2 in Figure C.
d. S1 to S2 in Figure D.

Problem 2: Spending by households and businesses is influenced by:

Select one:
a. the availability of loans.
b. the size of the money supply.
c. the interest rates charged on loans.
d. all of these answers are correct.

Reference no: EM132951540

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