Suppose the Federal Reserve decides to increase the money supply. Which statement predicts the most likely effect? (3 points) a
Interest rates will rise, meaning that banks will give fewer loans and prices for goods and services will fall.

b
Interest rates will fall, meaning that banks will give more loans and more businesses can open and hire workers.

c
Interest rates will fall, meaning that prices will rise and businesses will not hire many workers.

d
Interest rates will rise, meaning that people will want to get more loans and prices will rise.