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.

If the Federal Reserve increased the money supply, there would be an increase in all products and services' prices, a decrease in interest rates, and inflation would most likely occur, so the dollar's monetary value will go down. This may force the US to borrow money from a neighbouring nation to keep the economy balanced; however, this will cause the country to suffer from debt later on.

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