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In Business / College | 2025-07-07

As the amount of money supply decreases, interest rates ____ which, in turn, causes spending to ____.
A. decrease; decrease
B. increase; increase
C. increase; decrease
D. decrease; increase

Asked by ay1inlain3z

Answer (2)

Decreasing the money supply typically leads to an increase in interest rates. Higher interest rates make borrowing more expensive, causing spending by households and businesses to decrease. Thus, the answer is Option D: decrease; increase. ;

Answered by GinnyAnswer | 2025-07-07

As the money supply decreases, interest rates increase, causing spending to decrease. The correct option is C: increase; decrease.
;

Answered by Anonymous | 2025-07-13

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