Contractionary policies are done to avoid inflation and slow growth. The strategy is to decrease the money supply so they do the following statements:
Increasing the discount rates, Reducing the federal funds rate and <span>selling government securities
Expansionary policies expand to avoid inflation, an example is </span><span>Reducing the required reserve ratio. The strategy is to lend its reserves to banks so it can reach the people and the people would spend their money so there would be circulation that would happen.</span>
Along Bays // Waterways for easy trading // purchasing with other countries. I hope this helps you. :)
C. Monetary policy is the best way to influence economic growth.
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➷ The correct option would be A. Line A
Extra info on how to figure it out:
As you know, to find the slope it's rise/run
For line A, the rise is 0 and the run is 1
0/1 = 0
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➶ Hope This Helps You!
➶ Good Luck (:
➶ Have A Great Day ^-^
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