If Federal Reserve would raise the interest rate, then the money supply will be decreased and bank will offer fewer loans only and prices will also fall.
The rise in the interest rate has the direct impact on the supply of the money. Higher the interest rate, lower the money supply and lower interest rate, increase the money supply.
Increase in the interest rate, will make the money more expensive as its supply would be decreased. High interest will discourage the people to not to take the loans.
The prices of goods and services will also fall.
Learn more about the Federal Reserve here:-
https://brainly.com/question/17097530
#SPJ1