The Fed reduces interest rates The money supply (increases or decreases?).

Increases

Explanation:

that is, the amount of cash and easily obtainable funds circulating throughout the country — the Federal Reserve reduces short-term interest rates. It can do so in two ways: reducing the federal funds rate and the discount rate

by using  production possibilities graph.  opportunity costs are key expenses in financial matters and are utilized as a part of registering money saving advantage investigation of a venture. such expenses, be that as it may, are not recorded in the record books but rather are perceived in basic leadership by processing the money costs and their subsequent benefit or misfortune.