Darshan needs to borrow money to start a business. Suppose that the saving rate in the country is expected to increase. Assuming nothing else changes, this means that if Darshan borrows now, his cost of borrowing money is expected to decrease

due to the following factor:

Rising interest rates.

Increasing preferences for future consumption.

Decreasing preferences for future consumption.

Which of the following events could increase the cost of money? Check all that apply.

The Federal Reserve sells Treasury securities to banks

The federal deficit decreases

The federal deficit increases

The Federal Reserve purchases Treasury securities held by banks