Which of the following is are the objectives of contractionary monetary policy ........

Economic and Social Issues Monetary and Fiscal Policy

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Which of the following is/are the objectives of contractionary monetary policy?

to decrease the overall supply of money in the economy

to make consumption difficult in the economy

To control inflation

All of the above

None of the options given above

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Explanation:

Contractionary policy is a monetary measure referring either to a reduction in government spending—particularly deficit spending—or a reduction in the rate of monetary expansion by a central bank. It is a type of macroeconomic tool designed to combat rising inflation or other economic distortions created by central banks or government interventions. Contractionary policy is the polar opposite of expansionary policy.