Produced lie: Eddy reeled (7)
I believe the answer is:
yielded
'produced' is the definition.
(yielding is a kind of producing)
'lie eddy reeled' is the wordplay.
'reeled' indicates an anagram (I've seen 'reels' mean this (letters dance or reel around)).
'lie'+'eddy'='lieeddy'
'lieeddy' with letters rearranged gives 'YIELDED'.
(Other definitions for yielded that I've seen before include "Generated (financial return)" , "Capitulated" , "Gave ground" , "Gave way under pressure" , "was paid" .)