If the Fed shifts to a more restrictive monetary policy, it will
generally sell some of its current holdings of bonds in the
open market. How will this action influence each of the fol-
lowing? Briefly explain each of your answers.
a. the reserves available to banks
b. real interest rates
c. household spending on consumer durables
d. the exchange rate value of the dollar
e. net exports
f. the prices of stocks and real assets like apartment or office
buildings
g. real GDP