Question

A tight monetary policy means __________.

A. the Federal Reserve wants to increase the amount of money in the economy
B. the Federal Reserve wants to decrease the amount of money in the economy
C. borrowing money is inexpensive and easy to obtain
D. businesses expand and increase the number of employees

Answer 1

A tight monetary policy means the Federal Reserve wants to decrease the amount of money in the economy.

So the answer is B. the Federal Reserve wants to decrease the amount of money in the economy