According to the Taylor rule, which of the following will lead to a higher nominal federal funds rate?

Suppose firms become more optimistic about the economy's ability to avoid a recession and hence the expected profit increases. As a result, the demand for loanable funds curve shifts ________ and the real interest rate ________

A) leftward; rises B) rightward; rises C) rightward; does not change D) leftward; falls E) rightward; falls

Of all the components of the M1 and M2 measures of the money supply, the largest is savings deposits

Indicate whether the statement is true or false