Restrictive monetary policy is designed to curtail aggregate demand and to overcome?

By: |Published on: Jan 7|Categories: Economics WAEC| 0 comments

A. Deflation
B. Reinflation
C. Disinflation
D. Inflationary gap

Correct Answer: Option D

D. Inflationary gap

Explanation

Restrictive monetary policy which is also known as contractionary monetary policy is used to increase the interest rate and reduce investment so as to control inflation in an economy.

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