The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate [increases or decreases] banks' incentives to borrow reserves from the Federal Reserve, thereby [increasing or reducing] the quantity of reserves in the banking system and causing the money supply to [fall or rise].

Increases

Increasing

Rise

Explanation:

When the discount rate ,which is the interest rate is lowered , the banks will be motivated to borrow more money as the cost to them is lower and there is also the opportunity of the bank charging a good interest to their customers.

This will lead to increased quantity of reserves in the banks and also a rise in the overall supply of money in the economy  as the banks will have enough funds to give loans to customers .

answer; trojan horse;

riley- $3

sean- $4

jake- $8

riley has the absolute advantage.