Select all that apply.

Select the items that describe what is most likely to happen when the Federal Reserve decreases the money supply.

the economy grows

individuals borrow less money

interest rates rise

businesses make fewer investme

Question

Peyton Cardenas

Business

22 December, 19:21

Select all that apply.

Select the items that describe what is most likely to happen when the Federal Reserve decreases the money supply.

the economy grows

individuals borrow less money

interest rates rise

businesses make fewer investme

+3

Answers (1)

Know the Answer?

Daniel Parker · Answer 1

The most applicable answers are,

*individuals borrow less money

*interest rates rise

Explanation:

When the money supply is decreased, the interest rates between the federal reserve and the bank lending rates. This in turn increase the average landing rate sin the country, increasing the cost of borrowing and as a result, individuals and organizations tends borrow less money.

Select all that apply.Select the items that describe what is most likely to happen when the Federal Reserve decreases the money supply.the economy growsindividuals borrow less moneyinterest rates risebusinesses make fewer investme

Select all that apply.

Select the items that describe what is most likely to happen when the Federal Reserve decreases the money supply.

the economy grows

individuals borrow less money

interest rates rise

businesses make fewer investme