Consider the two graphs above. Suppose that improvements in storage technology reduce inventory losses. This would ________ the desired level of inventories, as depicted in graph ________

Assuming all else equal, any change that causes a decrease in the credit supply at a given real interest rate will cause:

A) the credit supply curve to shift to the right. B) an upward movement along the credit supply curve. C) a downward movement along the credit supply curve. D) the credit supply curve to shift to the left.

Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit supply curve shifts to the left?

A) Both equilibrium rate of interest and quantity of credit will increase. B) The equilibrium rate of interest will increase and the quantity of credit will decrease. C) Both equilibrium rate of interest and quantity of credit will decrease. D) The equilibrium rate of interest will decrease and the quantity of credit will increase.