If the Federal Reserve Bank were to increase the reserves that commercial banks are legally required to hold, we would expect

lower interest rates, an expanded GDP$,$ and a lower rate of inflation.

None of the answers above.

lower interest rates, an expanded GDP$,$ and a higher rate of inflation.

higher interest rates, a contracted GDP$,$ and a lower rate of inflation.

higher interest rates, a contracted GDP$,$ and a higher rate of inflation.