The economy has been sluggish in recent months with slow economic growth. Which results would lead to a strong and healthy economy?(1 point)

Question

Responses

An increase in the money supply and decrease in interest rates result in more lending and risk.
An increase in the money supply and decrease in interest rates result in more lending and risk.

A decrease in the money supply increases interest rates, which increases lending.
A decrease in the money supply increases interest rates, which increases lending.

An increase in the money supply increases interest rates and inflation, which spurs economic growth.
An increase in the money supply increases interest rates and inflation, which spurs economic growth.

A short-term profits and decrease in the money supply cause a decrease in interest rates and increased lending.

Answer 1

The response that would lead to a strong and healthy economy is:

An increase in the money supply and decrease in interest rates result in more lending and risk.

This scenario typically encourages borrowing and spending by consumers and businesses, which can stimulate economic growth.