What contractionary monetary policy actions may be used to help reduce inflation?

A. The money supply is reduced, so banks charge a lower interest rate on
loans, leading to higher borrowing and growth.
B. The money supply is reduced, so banks charge a higher interest rate
loans, leading to slower borrowing and growth.
C. The money supply is increased, so banks charge a lower interest rate on
loans, leading to slower borrowing and growth.
D. The money supply is increased, so banks charge a higher interest rate on
loans, leading to slower borrowing and growth.

The answer is B.

Explanation:

Contractionary monetary policy is a policy adopted by Central banks when the economy is heating up i.e when the economy is moving faster than it can withstand. So this is used to slow down the economy.

There is always a higher inflation and money supply is high when the economy is heating up.

So to contract or slow down the economy, the central banks increase the interest rate, this increase in interest rate discourages borrowing from households, businesses and even commercial banks and when there is a low demand for borrowed fund, money supply (total quantity of money in circulation) decreases.

The answer is B.

Explanation:

To make thing more simple, the money supply is reduced, so banks charge a higher interest rate on loans, leading to slower borrowing and growth. Monetary policy involves controlling the supply of money, sometimes through interest rates. When the supply of money is reduced, central banks make borrowing money more difficult and less appealing by raising interest rates on a variety of loans.

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steering wheels are always situated on the left side of the car.

always drive on the right side of the road.

white lines separate lanes of traffic traveling the same direction.

hashed or broken lines means you may change lanes when it is safe.

solid white lines mean stay in your lane.

yellow lines separate traffic moving in opposing directions.

hashed or broken yellow lines mean you can carefully pass, paying attention to oncoming traffic.

never cross a solid yellow line (or double yellow line).

when turning left at an intersection, pass in front of any cars that are turning left from the opposing direction (do not try to pass behind them).

use the left lane to pass other cars traveling your direction.

do not pass in the right lane unless absolutely necessary.

if you are driving in the far left hand lane and someone would like to pass you, move over to the right lane when it is safe to do so and allow them to pass.

you must always yield to pedestrians.

come to a complete stop whenever you see pedestrians trying to cross the street.

never pass a school bus if it has flashing red lights. wait until the lights have stopped.

be aware of bicyclists. often they share the road with cars and are supposed to also follow general traffic laws.

be particularly careful about driving in cities with bike lanes -- always check before turning that a bike is not coming.

it is mandatory to pull over or stop at an intersection to allow an emergency vehicle to pass you if you see one traveling with lights flashing and/or a siren running.

do not overuse your car horn. horns are used almost exclusively for emergency situations or for when you feel unsafe.

explanation:

explanation:

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