Monetary restraint is associated with all of the following except
A)A decrease in interest rates.
B)A decrease in the money supply.
C)An increase in the reserve requirement.

Question

Quizplus · Accepted Answer

Monetary restraint is typically associated with an increase in interest rates to reduce borrowing and spending, a decrease in the money supply to limit the availability of credit and reduce inflation, and an increase in the reserve requirement to decrease the amount of funds banks have available to lend. Therefore, A is the only choice that is not associated with monetary restraint.

Monetary Restraint Is Associated with All of the Following Except