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Why is the slow growth that can result from a contractionary policy a positive effect?

It can increase interest rates.
It can decrease available credit.
It can increase the money supply.
It can decrease inflation.

Why is the slow growth that can result from a contractionary policy a positive effect It can increase interest rates It can decrease available credit It can inc class=

Respuesta :

Answer: It can decrease inflation

Explanation:

A slow growth rate can result from the contractionary policy of a positive effect which can lead to a decrease in inflation. Thus option A is correct.

What is the contractionary policy?

Contractionary policy forms a money measure that refers to the decrease of the govt spending and specially on the deficit expenses and the reduction in the rate of the monetary expansion by the central bank.

This policy can be understood by the government deposits of the US treasury which are fed by the deposit cash in order to apply the policy. The slow growth of policy can lead to the positive effect that tends to decrease inflation.

Find out more information about the contractionary policy.

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