The purpose of a tight money policy is to

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A tight money policy is implemented by the government to control inflation and curb economic growth. It involves raising interest rates and restricting the availability of bank credit, which makes it more difficult for people and businesses to borrow money. This can lead to a decrease in consumer spending and business investment, which helps to slow down the economy. It is not aimed at alleviating recessions or increasing investment spending, nor does it necessarily result in budget surpluses.

The Purpose of a Tight Money Policy Is to