The major indicators of monetary tightness or ease are the

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The level of interest rates and the rate of growth of the money supply are the major indicators of monetary tightness or ease. When interest rates are high, lending and borrowing become more expensive, which causes a decrease in consumer spending and investment. Conversely, when interest rates are low, consumer spending and investment increase, which leads to economic growth. Additionally, the rate of growth of the money supply can affect the level of inflation and, therefore, also affect the economy's overall health.

The Major Indicators of Monetary Tightness or Ease Are the