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Question $88$ of $90$

To fight a recession the FED will use expansionary monetary policy. Which of the following series of events should we expect to see happen as a result? This is not a repeat question. The choice of potential answers are different.

Nominal interest rates will fall, number of bank loans will increase and money supply will increase.

Nominal interest rates will fall, numberr of bank loans will increase and money supply will decrease.

Nominal interest rates will rise, number of bank loans will increase and money supply will increase.

Nominal interest rates will fall, number of bank loans will decrease and money supply will increase.