This chart shows a sequence of causes and effects in how banking can affect society. Complete the chart by selecting the correct word. First Second Third Fourth Fifth Sixth Seventh Eighth
The Fed reduces interest rates. Banks will make (more or fewer?) loans. The money supply (increases or decreases?). People and businesses are (more or less) likely to spend and borrow money. The number of jobs will (decrease or increase?). People will buy (more or fewer?) cars, homes, and fun stuff. Growth of the economy speeds up. Inflation will (decrease or increase?).