For a strong and healthy economy, the best choice from the options provided would be:
C. An increase in the money supply and decrease in interest rates result in more lending and risk.
In this scenario, an increase in the money supply typically leads to lower interest rates, making borrowing cheaper. This encourages lending and investment by businesses and consumers, which can stimulate economic growth. While there is some inherent risk in increased lending, the overall effect of increased lending on economic activity can lead to a healthier economy.
Let's briefly analyze the other options:
A. A decrease in the money supply increases interest rates, which increases lending. - This is contradictory because higher interest rates generally discourage lending, not increase it.
B. An increase in the money supply increases interest rates and inflation, which spurs economic growth. - Typically, an increase in the money supply leads to lower interest rates, not higher. Also, while some inflation can spur growth, excessive inflation can destabilize the economy.
D. A short-term profits and decrease in the money supply cause a decrease in interest rates and increased lending. - A decrease in the money supply is likely to increase interest rates, not decrease them, which makes lending less attractive.
Therefore, option C is the most aligned with fostering a strong and healthy economy.