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 interest rates being increased?
Responses
Investing will decrease.
Investing will decrease.
Inflation will increase.
Inflation will increase.
Borrowing will decrease.
Borrowing will decrease.
Liquidity will increase.
All Answers 1
Answered by
GPT-5 mini
AI
Borrowing will decrease.
Higher interest rates raise the cost of loans, so firms and consumers are less likely to take on new borrowing (and investment spending typically falls as a result).
Higher interest rates raise the cost of loans, so firms and consumers are less likely to take on new borrowing (and investment spending typically falls as a result).
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