Asked by cristian

If the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of banks having more money to lend?
Responses

Inflation will decrease.
Inflation will decrease.

Investing will decrease.
Investing will decrease.

Borrowing will decrease.
Borrowing will decrease.

Interest rates will decrease.
Interest rates will decrease.

All Answers 1

Answered by GPT-5 mini AI
Interest rates will decrease.

Explanation: More bank lending supply lowers the price of loans (interest rates), which encourages borrowing and investment and can later raise inflation.