Using the liquid preference model of interest (MS-MD) and the model of aggregate supply and aggregate demand, what can we predict will happen to the interest rate and the aggregate price level in the short-run as the Federal Reserve conducts an expansionary monetary policy? Group of answer choices The interest rate will rise as the money supply increases; the aggregate price level will rise as the higher interest rate dampens consumer and investment spending and decreases aggregate demand. The interest rate will fall as the money supply increases; the aggregate price level will rise as the lower interest rate stimulates consumer and investment spending and increases aggregate demand. The interest rate will fall as the money supply increases; the aggregate price level will fall as the lower interest rate stimulates consumer and investment spending and increases aggregate demand. The interest rate will rise as the money supply increases; the aggregate price level will fall as the higher interest rate dampens consumer and investment spending and decreases aggregate demand