Which kind of monetary policy would you expect in response to high inflation: expansionary or contractionary?...

Question

Question

Which kind of monetary policy would you expect in response to high inflation: expansionary or contractionary?

Group of answer choices

either could be deployed

contractionary

neither

expansionary

Answer 1

Answer #1

contractionary

this would result in lowering the demand in the market which would reduce the price levels in the country

Answer 2

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