Suppose the Federal Reserve decides to increase the money supply. Which statement predicts the most likely effect? O Interest rates will rise, meaning that banks will give fewer loans and prices for goods and services will fall.
O Interest rates will fall, meaning that banks will give more loans and more businesses can open and hire workers.
O Interest rates will fall, meaning that prices will rise and businesses will not hire many workers.
O Interest rates will rise, meaning that people will want to get more loans and prices will rise.