Use the following graph for the federal funds market to answer the next question.If the Fed wants the federal funds rate to be at if1, what quantity of reserves do they need to make available to banks?

U.S. dollar bills

A) are backed by gold. B) are backed by silver. C) are backed by platinum. D) are backed by uranium. E) are not backed by any precious metal.

An increase in the production of capital goods

A) must increase the current production of consumer goods. B) must decrease the future production of consumer goods. C) shifts the production possibilities frontier inward in the future. D) shifts the production possibilities frontier outward in the future.