C+ I+ G+ (X - M) Taylor rule: taylor rule.png r effect = 1/MPS MV=PT Question 3 1 pts With Covid, between 2020 and 2021, the Federal Reserve created and distributed $6.5 trillion of new money. Currently bank reserve requirements are 10%. According to the loanable funds model, what effect should this have? interest rates ; quantity of borrowing and lending O increase; increase increase; decrease O decrease; increase O decrease; decrease