based on the information presented in the video, which of the following is likely to occur as a result of…

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.\nemployers will bring on large numbers of new employees.\nthe inflation rate will stop growing or decrease.\nconsumers will spend less money, causing an economic slowdown.\nprices for durable goods will increase dramatically.\nthe unemployment rate may rise.

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.\nemployers will bring on large numbers of new employees.\nthe inflation rate will stop growing or decrease.\nconsumers will spend less money, causing an economic slowdown.\nprices for durable goods will increase dramatically.\nthe unemployment rate may rise.

Answer

Answer:

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

Brief Explanations:

When the Fed decreases the money supply, it becomes more expensive to borrow money. This leads to less consumer spending as loans are costlier, causing an economic slowdown. With reduced economic activity, employers may not hire as much, potentially increasing unemployment. Also, decreased demand due to less money in circulation helps in curbing inflation.