Question
18. Which goal will be achieved through a tight money policy? inflation is controlled the economy expands more small businesses open consumers have increased access to money
Answer
4.2
(147 Votes)
Rhiannon
Veteran · Tutor for 11 years
Answer
A. Inflation is controlled
Explanation
A tight money policy is a monetary policy adopted by a central bank that aims to slow down the economy by making money more expensive to obtain. This reduces the money supply, increases interest rates, and slows economic activity. The primary goal is to control inflation by reducing the supply of money and credit available. Therefore, in response to a tight monetary policy, it wouldn't be expected five to see the economy expand, more small businesses open, or consumers have increased access to money as these are all stimulated by easy monetary policy.