When The Fed initiates contractionary policy, which of the following multiple events will occur?

 

A. Real interest rates will decrease, bank deposits will increase and the value of bank loans will increase.

B. Real interest rates will increase, stock prices will decrease and the volume of bank loans will decrease.

C. Real interest rates will increase, stock prices will increase and moral hazard will increase

D. Real interest rates will decrease, stock prices will increase and the dollar will appreciate in value