The goal of contractionary monetary policy is to _______ the economy by _______ interest rates.
A) stimulate; reducing
B) stimulate; raising
C) slow down; reducing
D) slow down; raising

Question

Quizplus · Accepted Answer

The goal of contractionary monetary policy is to slow down the economy to combat inflationary pressures. This is achieved by raising interest rates, which will decrease borrowing and spending and ultimately slow down economic growth. Therefore, choice D is the correct answer.

The Goal of Contractionary Monetary Policy Is to _______ the Economy