if the domino effect occurs as a result of changes in the money supply, what will most likely happen as an…

Brief Explanations:

When interest rates increase, the cost of borrowing money rises. This makes borrowing less attractive for individuals and businesses, so borrowing will likely decrease immediately. Investing may not decrease right away as some investors might still see opportunities. Higher interest rates are typically used to combat inflation, so inflation is likely to decrease rather than increase. Also, higher interest rates tend to draw money into savings and away from circulation, reducing liquidity.

Answer:

A. Borrowing will decrease.