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When Economists Refer to 'Tight' or 'Contractionary' Monetary Policy, They

Question 26

Multiple Choice

When economists refer to 'tight' or 'contractionary' monetary policy, they mean that the RBA is taking actions that will:


A) increase the cash rate and decrease the money supply
B) increase the cash rate and increase the money supply
C) decrease the cash rate and increase the money supply
D) decrease the cash rate and decrease the money supply

Correct Answer:

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