Which Best Explains How Contractionary Policies Can Hamper Economic Growth in How To

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Which best explains how contractionary policies can hamper
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Another negative side effect is it makes an increase in the unemployment rate. The policy involves decreasing the money supply through increase in the discount rate or sale of government bonds or increase in the reserve ratio.contractionary policy. Contractionist policy is a subgroup of some other policies that make up economic policy as a whole, such as fiscal, exchange and monetary policies, for example.

Which best explains how contractionary policies can hamper

They reduce taxes which raises deficits. They reduce disposable income.contractionary money policy is used to combat inflation. It can decreases gdp and dampens inflation, but also leads to reduced disposable income. Which best explains how contractionary policies can hamper economic growth?