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 is likely to decrease immediately. Investing may not decrease right away as some investments are long - term and not as sensitive to short - term interest rate changes. Higher interest rates are typically used to combat inflation, so inflation is likely to decrease rather than increase. Liquidity usually decreases as higher interest rates encourage saving rather than spending and borrowing, reducing the amount of money in circulation.

Answer:

Borrowing will decrease.