Funds are channeled from savers to borrowers indirectly through ________ and directly through ________

In the above figure, ________ will shift in the demand curve from D to D1

A) an increase in income if pizza is an inferior good B) a decrease in the price of a sub sandwich, a substitute for pizza C) buyers' expectation that pizza will be less expensive next week D) a scientific article published that demonstrates eating pizza is good for one's health E) a fall in the cost of producing pizza

If the central bank uses monetary policy to increase the ____________ rate, then commercial banks will reduce their borrowing of reserves from the Fed.

a. savings b. discount c. activity d. return