A tight-money policy in the short run typically leads to
A) slower money growth.
B) higher interest rates.
C) lower output.
D) all of the above

Name: A tight-money policy in the short run typically leads to A) slower money growth. B) higher interest rates. C) lower output. D) all of the above
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

A tight-money policy involves an increase in interest rates and a decrease in money supply, which ultimately results in lower output in the short run. Therefore, all the choices A, B, and C are correct.

A Tight-Money Policy in the Short Run Typically Leads to