The opportunity cost of moving from point a to point b in the above figure is ________

If the Fed is concerned about a possible recession, it ________ the federal funds rate, which ________ the quantity of reserves and ________ the amount of bank loans

A) raises; increases; increases B) lowers; increases; increases C) raises; decreases; decreases D) lowers; increases; decreases E) lowers; decreases; decreases

Holding all other factors constant, the quantity demanded of an asset is

A) positively related to wealth. B) negatively related to its expected return relative to alternative assets. C) positively related to the risk of its returns relative to alternative assets. D) negatively related to its liquidity relative to alternative assets.