Contractionary monetary policy

What is the aim of Monetary Policy?

• To decrease interest rates

• To increase interest rates

• To influence I and C of the aggregate demand curve

What was the impact of contractionary monetary policy on the Argentinian economy in 2022?

• Increased inflation

• Decreased inflation

• Stabilized inflation

What is the effect of high interest rates on investment and consumer spending?

• It has no effect on investment and consumer spending

• It increases investment and consumer spending

• It decreases investment and consumer spending

How does contractionary policy impact consumer spending?

• It increases consumer spending

• It decreases consumer spending

• It stabilizes consumer spending

What is the impact of currency appreciation on export-oriented producers?

• It increases competitiveness in international markets

• It has no effect on competitiveness in international markets

• It leads to reduced export volumes and declining revenues

How did subsidies on utilities and basic goods impact consumers in the short run?

• It had no impact on consumers

• It increased the cost of living for consumers

• It decreased consumer income

What was the impact of subsidies on energy and transportation in the long run?

• It led to lower fuel prices for consumers

• It increased fuel prices for consumers

• It stabilized fuel prices for consumers

How did the contractionary policy impact the government's budget deficit?

• It decreased the budget deficit

• It had no impact on the budget deficit

• It widened the budget deficit

What was the impact of increased spending on subsidies on the government's resources for education and research?

• It increased resources for education and research

• It stabilized resources for education and research

• It decreased resources for education and research

What was the impact of contractionary policy on foreign direct investment?

• It increased foreign direct investment

• It had no impact on foreign direct investment

• It decreased foreign direct investment