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If the inflation rate turns out to be lower than expected: Borrowers will gain at the expense of lenders on previously issued loans. O Lenders will gain at the expense of borrowers on previously issued loans. Borrowers will gain at the expense of lenders on new loans. O Lenders will gain at the expense of borrowers on new loans. Question 2 0.4 pts If the Fed increases reserve requirements and purchases Treasury securities through open market operations, the money supply will O increase. decrease O remain the same. O increase, decrease, or remain the same (depending on the relative magnitude of the changes)