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Based on the information presented in the video, which of the following is likely to occur as a result of the Fed decreasing the money supply? Check all that apply.
-Employers will bring on large numbers of new employees.
-The inflation rate will stop growing or decrease.
-Consumers will spend less money, causing an economic slowdown.
-Prices for durable goods will increase dramatically.
-The unemployment rate may rise.

Respuesta :

johnnyphil4
2- The inflation rate will stop growing or decrease.
3- Consumers will spend less money, causing an economic slowdown.
5- The unemployment rate may rise.

Are correct answers.
Parrain

If the Fed engaged in policy that decreased money supply:

  • The inflation rate will stop growing or decrease.
  • Consumers will spend less money, causing an economic slowdown.
  • The unemployment rate may rise.

What will happen if there is a decrease in money supply?

As a result of people being unable to get enough money, they will spend less on goods and services which will lead to the inflation rate decreasing or remaining stable.

Unemployment might also rise as people reduce their spending which will lead to companies laying off people as they reduce their production.

Find out more on money supply at https://brainly.com/question/4240493.

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