Based on the information presented in the video, which of the following is likely to occur as a result of the Fed decreasing the money supply? Check all that apply.

When the Fed decreases the money supply, borrowing and spending tend to fall. Lower spending can slow the economy and reduce pressure on prices, so inflation may stop rising or decrease; a slowdown can also cause unemployment to rise. Employers are therefore not likely to hire large numbers of workers, and durable-goods prices would not be expected to increase dramatically.

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