Which scenario indicates that a contractionary monetary policy is needed? A. The economy has grown too quickly. B. Interest rates have recently been at an all-t
Ujian Nasional
sitafelily6di
Pertanyaan
Which scenario indicates that a contractionary monetary policy is needed? A. The economy has grown too quickly. B. Interest rates have recently been at an all-time high C. The money supply has been decreasing. D. The economy is growing at a steady pace
1 Jawaban
-
1. Jawaban memperbaiki123
I will answer the question by using two types of answer.
Brief answer:A
Long explanation:
Contractionary monetary policy is a form of economic policy used to fight inflation, which involves decreasing the money supply in order to increase the cost of borrowing which in turn decreases GDP and dampens inflation. Iflation is usually the indication that the economy has grown too quickly Hence, the answer is A) The economy has grown too quickly.