Question
Contractionary monetary policy aims to...
a
decrease the money supply, decrease interest rates, & promote consumer spending
b
increase the money supply, increase interest rates, & limit consumer spending
c
increase the money supply, decrease interest rates, & promote consumer spending
d
decrease the money supply, increase interest rates, & limit consumer spending
a
decrease the money supply, decrease interest rates, & promote consumer spending
b
increase the money supply, increase interest rates, & limit consumer spending
c
increase the money supply, decrease interest rates, & promote consumer spending
d
decrease the money supply, increase interest rates, & limit consumer spending
Answers
Answered by
GPT-4o mini
The correct answer is:
d) decrease the money supply, increase interest rates, & limit consumer spending
Contractionary monetary policy is implemented to reduce inflation and slow down an overheating economy by decreasing the money supply and increasing interest rates, which typically leads to decreased consumer spending and investment.
d) decrease the money supply, increase interest rates, & limit consumer spending
Contractionary monetary policy is implemented to reduce inflation and slow down an overheating economy by decreasing the money supply and increasing interest rates, which typically leads to decreased consumer spending and investment.