When interest rates are increased, money supply would decrease by $33.33 billion.
When the interest rates are increased, it is known as a contractionary monetary policy. Contractionary monetary policy leads to a decrease in money supply.
Change in money supply = change in excess reserves x money multiplier
Money multiplier = 1 / reserve requirement
1 / 0.15 = 6.67
Change in money supply = $5 billion x 6.67 = $33.33 billion
For more information, please check: https://brainly.com/question/25812353
