Question

If the Federal Reserve decreased the money supply, what would the effects be? Check all that apply.
decreased interest rates
Dincreased interest rates
decreased borrowing
increased borrowing
decreased investing
O increased investing

Answer 1

If the Federal Reserve decreased the money supply, the effects would be:

• Increased interest rates
• Decreased borrowing
• Decreased investing

What is money supply?

This refers to the total number of money in an economy at a point in time. The federal reserve uses various tools to control the supply of money in circulation.

A reduced money supply increases interest rates, which makes borrowing more expensive and slows corporate investing

Learn more about money supply here: https://brainly.com/question/3625390

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