Suppose the Federal Reserve raises interest rates. Which of the following predicts the most likely results? The money supply wil
l decrease, meaning that banks will give fewer loans and prices for goods and services will fall. The money supply will decrease, meaning that more people will buy goods and services and prices will rise. The money supply will increase, meaning that banks will give more loans and more businesses can open and hire workers. The money supply will increase, meaning that prices will rise and businesses will not hire many workers.
The answer is money will decrease, meaning that banks will give fewer loans and prices for goods and services will fall.
This is because h<span>igher 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.
The correct answer should be money will rapidly descend, which means that the banks all over will lend out fewer loans. Most of all the prices of goods will decrease as well!.
The Articles of Confederation created a confederation in the United States. A confederation is a government in which the state government, not national, have dominant power. The leaders of the new nation feared that a strong, centralized government would lead to tyrannical monarchy like the British government.
There is not a lot of solid information on Osman I who established the Ottoman dynasty around 1300 CE. He was the hereditary leader of a small principality in Anatolia.
