Question

The United States government decides to use a loose money policy to assist businesses in borrowing money in an effort to help them hire more people. What is a likely unintended consequence of such an action?

Answer 1

Higher Rates of inflation

Answer 2

Answer:

Higher Rates of Inflation

Explanation:

Loose Money Policy is a monetary policy in which the money supply of the government is increased and is made more easily accessible to citizens with the objective of having an economic growth. As a consequence of having more money in the market, it will most likely loose value.