Question

"What are the results of a contractionary monetary policy, which intends to slow down the economy, and what are not? You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Is a result of a contractionary monetary policy (tight money policy) Is not a result of contractionary monetary policy (tight money policy)"

Answer 1

Contractionary monetary policy usually results in:

• lower money supply
• higher interest rates
• lower inflation rates
• lower investment rates
• lower nominal gross domestic product
• higher unemployment
• decrease in consumer spending
• aggregate demand curve shifts to the left