The government is concerned about inflationary pressures that seem to be building within the nation. Restricting the growth of money supply provides an effective strategy to reduce these inflationary pressures.

Question

Quizplus · Accepted Answer

Restricting the growth of money supply can reduce the amount of money available to spend, which can lower demand for goods and services and therefore reduce the risk of inflation.

The Government Is Concerned About Inflationary Pressures That Seem to Be