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Suppose the federal reserve increases the money supply. in at least four sentences, explain the effects of this action on interest rates, consumption, investments, and gross domestic product and what would cause them to make this decision.

Verified Answer :

Hagrid

Given the situation, most likely there will be a price increase in all the products and services. The monetary value of the dollar will probably go down. This situation will force the US to borrow money from neighboring nation and make the country suffer from debt. 

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Answer:

Given the circumstances, all products and services are expected to see price increases. The dollar's monetary value will most likely decline. This predicament will require the United States to borrow money from a neighboring country, putting the country in debt.

Explanation:

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