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If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of banks having more money to lend

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Answer:

Interest rates will decrease.

Step-by-step explanation:

User Yasan Glass
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The concept of domino effect is one of the term more used for the economy.

Due to it can classified economics events as economics crisis. But it is not only describe negatives events it could be referred to positive economics tendencies.

But now, according the statement commented and the context, the domino effect could produce:

1) The process of Inflation will increase.

2) The Liquidity will increase. ( It may be not good).

3) The Investing will decrease.

4) The possibility of Borrowing will decrease.


User Elsalex
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