Assume that to cool off the economy and decrease expectations for inflation, the Federal Reserve tightaned the mosey supply, causing an increase in the riak$-$free rate, ras. Investors also became coeserned that the Fed's actions would lead to a recession, mod that led to an increase in the market risk premium, $(P{M}^{-rgy}).$ Under these conditions, with edher things held constant, which of the following statements is most correct?