PLEASE ITS URGENT,PLEASE ITS URGENT,PLEASE ITS URGENT, When Federal Reserve opts for a contractionary monetary...

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Finance

PLEASE ITS URGENT,PLEASE ITS URGENT,PLEASE ITS URGENT,

When Federal Reserve opts for a contractionary monetary policy, which of the following does NOT happen

A Banks with larger income gap contract their lending more than the banks with smaller income gap

B Firms borrowing from banks with larger income gap reduce their investment by less than the firms borrowing from banks with smaller income gap

C In general, banks might reduce the lending

D Banks with larger income gap generate strong earnings compared to banks with smaller income gap

E Fed funds rate rises

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