When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:
A. a loose monetary policy.
B. a contractionary monetary policy.
C. a expansionary monetary policy.
D. a quantitative easing policy.
Answer:B
When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:
A. a loose monetary policy. B. a contractionary monetary policy. C. a expansionary monetary policy. D. a quantitative easing policy.
Explanation: Type: Multiple Choice Category: Analyze