if the domino effect occurs as a result of changes in the money supply, what will most likely happen as an…

if the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of banks having more money to lend? borrowing will decrease. interest rates will decrease. investing will decrease. inflation will decrease.

if the domino effect occurs as a result of changes in the money supply, what will most likely happen as an immediate result of banks having more money to lend? borrowing will decrease. interest rates will decrease. investing will decrease. inflation will decrease.

Answer

Brief Explanations:

When banks have more money to lend, the supply of loan - able funds in the market increases. According to the law of supply and demand in the market for loan - able funds, an increase in supply leads to a decrease in the price of borrowing money, which is the interest rate.

Answer:

B. Interest rates will decrease.