Suppose the federal reserve raises interest rate what statement presicts the most likely effect

The money supply will decrease, meaning that banks will give fewer loans, and prices for goods and services will fall.

Explanation:

Higher interest rates means that it is more expensive to borrow money and therefore fewer people and businesses will request loans. This increases the money supply, economic growth, and the rate of inflation. A higher reserve rate means that banks have to keep more cash, decreasing the money supply.

answer; i believe that the correct answer is (tabula rasa);

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