Upon which of the following industries is a restrictive monetary policy likely to be most effective?
A) furniture
B) clothing
C) food processing
D) residential construction

Question

Quizplus · Accepted Answer

A restrictive monetary policy involves increasing interest rates and decreasing the money supply, which can lead to decreased spending and investment. Residential construction is a highly interest rate sensitive industry, and higher interest rates can lead to reduced demand and activity in the sector. Hence, it is likely to be the most effective industry for implementing a restrictive monetary policy.

Upon Which of the Following Industries Is a Restrictive Monetary