Reducing the money supply stimulates the economy.

Name: Reducing the money supply stimulates the economy.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Reducing the money supply usually has a contractionary effect on the economy, leading to reduced spending and economic activity. This is because when there is less money available, individuals and businesses have less to spend and invest, which can lead to decreased demand for goods and services, lower profits, and potentially higher unemployment.

Reducing the Money Supply Stimulates the Economy