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CFA Level 1
Economics

Contractionary Monetary Policy Identification

Very Easy Macroeconomics Monetary And Fiscal Policy

In an economy experiencing high inflation, government policymakers consider various measures to stabilize prices and support economic growth. They can employ monetary policy, which involves controlling the money supply and interest rates, or fiscal policy, which entails changes in government spending and taxation.

Which of the following actions is a part of contractionary monetary policy that aims to reduce inflation?

Hint

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