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History, 22.04.2021 19:50 sadie83

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.

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