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.\n□ employers will bring on large numbers of new employees.\n□ the inflation rate will stop growing or decrease.\n□ consumers will spend less money, causing an economic slowdown.\n□ prices for durable goods will increase dramatically.\n□ the 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.\n□ employers will bring on large numbers of new employees.\n□ the inflation rate will stop growing or decrease.\n□ consumers will spend less money, causing an economic slowdown.\n□ prices for durable goods will increase dramatically.\n□ the unemployment rate may rise.

Answer

Brief Explanations:

When the Fed decreases the money supply, there is less money in circulation. This leads to higher interest - rates. Higher interest - rates make borrowing more expensive for businesses and consumers. Businesses may cut back on hiring, leading to a possible rise in unemployment. Consumers will have less money to spend, causing an economic slowdown. Also, with less money chasing goods and services, inflation is likely to stop growing or decrease.

Answer:

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