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HACTEHA [7]
4 years ago
9

16. What monetary policy should be implemented to correct an inflationary economy?

Social Studies
2 answers:
mrs_skeptik [129]4 years ago
7 0

Answer: Contractionary monetary policy

Explanation: Contractionary monetary policy should be implemented to correct an inflationary economy.

As a method of contolling inflation, contractionary monetary policy aims at reducing the circulating money supply within an economy .Consequently,  

to achieve this,bond prices are reduced and interests rates increased.

Kipish [7]4 years ago
3 0

tight monetary policy

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