1. An ? rate is the price of credit to a borrower. 2. An ? money policy expands the money supply, which leads to ? interest rates. 3. A tight money policy ? the money supply, which ? interest rates. 4. If banks' ? requirement is low, then banks have ? money to lend, and this boosts economic activity. If the reserve requirement is raised, then banks have less money to ? and the economy tends to shrink