Restrictive monetary policy is designed to curtail aggregate demand and to overcome________
ECONOMICS
JAMB 2019
Restrictive monetary policy is designed to curtail aggregate demand and to overcome________
- A. Deflation
- B. Reinflation
- C. Disinflation
- D. Inflationary gap
Correct Answer: D. Inflationary gap
Explanation
Restrictive monetary policy which is also known as contractionary monetary policy is used to increase interest rate and reduce investment so as to control inflation in an economy.
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