Suppose a decrease in the supply of paper results in an increase in revenue. This indicates that

The credit spread between government bonds and corporate bonds is ________

A) countercyclical and coincident B) procyclical and coincident C) procyclical and lagging D) countercyclical and leading E) acyclical

Which of the following would tend to increase AD?

a. a commercial bank using excess reserves to extend a loan to a customer b. a commercial bank purchasing U.S. securities from the Fed as an investment c. an increase in reserve requirements d. an increase in the discount rate