Restrictive monetary policy is designed to curtail aggregate demand and to overcome________

  • A Deflation
  • B Reinflation
  • C Disinflation
  • D Inflationary gap
jamb 2019english-language

The correct answer is D. Inflationary gap

Restrictive monetary policy which is also known as contractionary monetary policy is used to increase interest rate and reduce investment so as to control inflation in an economy.

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