contractionary monetary policy will likely be accompanied by a(n) in interest rates and that change in interest rates will cause a(n) in the value of the dollar.

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08-12-2022
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contractionary monetary policy will likely be accompanied by a(n) in interest rates and that change in interest rates will cause a(n) in the value of the dollar.

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jaiswaljyoti jaiswaljyoti · Answer 1 · 2022-12-17T11:16:33+01:00

A type of monetary policy known as contractionary monetary policy aims to slow down the rate of monetary expansion in order to combat inflation.

The main sign of an overheated economy, which can be brought on by prolonged periods of economic development, is a spike in inflation.

The Federal Reserve's three primary methods for reducing the money supply are raising interest rates, raising the minimum reserves required of banks, and selling government securities.

To know more about selling government securities, click the below link

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