why is the slow growth that can result from a contractionary policy a positive effect? it can increase loan…

Brief Explanations:

Contractionary policies aim to slow economic growth. By reducing the overall demand in the economy, they can lower inflationary pressures. Increasing loan - interest rates and decreasing available credit are tools of contractionary policy, not positive effects of the resulting slow growth. Contractionary policies decrease, not increase, the money supply.

Answer:

It can decrease inflation.