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

Restrictive monetary policy is designed to curtail aggregate demand and to overcome________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Deflation
  • B Reinflation
  • C Disinflation
  • D Inflationary gap
Correct Answer: Option D
Explanation:
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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