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Why is the slow growth that can result from a contractionary policy a positive effect?

2 Answers

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Answer:

D) It can decrease inflation

Step-by-step explanation:

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User Nishant Gupta
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The correct answer, assuming that it is a multiple choice question is that is can decrease inflation. The government uses as its tool the decision to increase interest rates, which will encourage saving and discourage spending and so decrease inflation.
User Osher
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