Question & Answer

Why is the slow growth that can result from a contractionary policy a positive effect?

Why is the slow growth that can result from a contractionary policy a positive effect?

  • It can increase interest rates.
  • It can decrease available credit.
  • It can increase the money supply.
  • It can decrease inflation.

1 Answer

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AnonymousJuly 1, 2024

Answer: It can decrease inflation.