please help Question 48 Not yet answered Points out of f r F

please help

Question 48 Not yet answered Points out of f r Flag question If the Federal Reserve raises the federal funds rate, which one of the following will not tend to happen as a result? Select one o a. Businesses will find it easier to obtain funds to expand e b. Car loan and home mortgage rates will rise O C. Economic activity will decrease. e d. The rate of inflation will increase.

Solution

Answer is C. Economic activity will decrease.

Explanation: wth the rise in interest rate by Federal reserves, will lead to the availability of finance at higher interest rates leading to less money supply in the market and demand of products in the market. This will leads to low economic activities.