A lower discount rate discourages banks from borrowing reserves and making loans. Therefore, if the Fed wants to expand the money supply, it raises the discount rate

The law of demand implies, holding everything else constant, that as the price of yogurt

A) decreases, the quantity of yogurt demanded will decrease. B) increases, the demand for yogurt will increase. C) increases, the quantity of yogurt demanded will decrease. D) decreases, the demand for yogurt will increase.

Holding supply constant, an increase in demand will

A) increase both the quantity and price. B) increase the equilibrium price and decrease the equilibrium quantity. C) decrease the equilibrium price and increase the equilibrium quantity. D) decrease both the quantity and price.