if the domino affect occurs as a resulty of chaanges in the money supply, what will most likely happen as an immediate rsult of intrest rates being increased

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26-06-2018
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if the domino affect occurs as a resulty of chaanges in the money supply, what will most likely happen as an immediate rsult of intrest rates being increased

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MrZieleniewo MrZieleniewo · Answer 1 · 2018-07-01T04:52:14+02:00

A) Borrowing will decrease.

A "domino effect" is when one thing tumbles into another and causes an inevitable reaction. If interest rates are increased, it will tend to cause individuals and companies to hesitate or delay in making investments that would require them to borrow. As Investment News explained (July 25, 2017): "Higher interest rates lead to higher borrowing costs, so mortgages would become more costly and business loan interest rates would rise. Some home buyers might postpone making real estate investments, and small business owners may be disinclined to take on debt."