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marusya05 [52]
1 year ago
5

If the Federal Reserve decreased the money supply, what would the effects be? Check all that apply.

Social Studies
1 answer:
NARA [144]1 year ago
7 0

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

  • Increased interest rates
  • Decreased borrowing
  • Decreased investing

<h3>What is money supply?</h3>

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: brainly.com/question/3625390

#SPJ1

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