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When the Federal Reserve increases the Federal funds rate,
A.
both the supply of bank loans and the supply of loanable funds decrease, thereby increasing the real interest rate.
B.
the supply of bank loans decreases, while the supply of loanable funds and the real interest rate both increase.
C.
both the supply of bank loans and the supply of loanable funds increase, while the real interest rate increases.
D.
both the supply of bank loans and the supply of loanable funds increase, thereby decreasing the real interest rate.