If the money supply grows too slowly which one of the following would NOT occur?
A) Economic growth would slow.
B) Unemployment would decrease.
C) The risk of recession would increase.
D) Inflationary pressures would decrease.

Question

Quizplus · Accepted Answer

If the money supply grows too slowly, it is likely that economic growth would slow down, the risk of recession would increase, and inflationary pressures would decrease. However, unemployment would not necessarily decrease as a result of slow money supply growth. In fact, it could potentially increase if businesses cannot access the necessary funds to expand or hire new employees.

If the Money Supply Grows Too Slowly Which One of the Following