Question

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?

Interest rates will decrease.
Investing will decrease.
Inflation will decrease.

Answer 1

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?

a. Borrowing will decrease.

b. Interest rates will decrease.***

c. Investing will decrease.

d. Inflation will decrease.

Step-by-step explanation:

Answer 2

Interest rates will decrease

Step-by-step explanation:

A likely immediate result of banks having more money to lend is that they will lower interest rates which can lead to more borrowing and spending by individuals and businesses. This could stimulate economic growth and potentially lead to inflation.