Question 18 Multiple Choice Worth 3 points)

Social Studies

1 answer:

Len [333]3 years ago

5 0

Money will decrease, meaning that banks will give fewer loans and prices for goods and services will fall.

This is because higher interest rates means that it is more expensive to borrow money and therefore fewer people and businesses will request loans. This tends to put downward pressure on demand for goods and services which in turn tends to put a downward pressure on prices.

Hope this helps :)

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