ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the goal of Contractionary Monetary Policy?
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To reduce money supply
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To increase money supply
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To increase taxes
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To decrease taxes
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Explanation:
Detailed explanation-1: -Note that the goal of contractionary monetary policy is to decrease the rate of demand for goods and services, not to stop it. So, higher interest rates through contractionary policy can be used to dampen inflation and move the economy back to the price stability component of the dual mandate.
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