why is the slow growth that can result from a contractionary policy a positive effect?\no it can increase…

why is the slow growth that can result from a contractionary policy a positive effect?\no it can increase loan interest rates.\no it can decrease available credit.\no it can increase the money supply.\no it can decrease inflation.

why is the slow growth that can result from a contractionary policy a positive effect?\no it can increase loan interest rates.\no it can decrease available credit.\no it can increase the money supply.\no it can decrease inflation.

Answer

Brief Explanations:

Contractionary policies aim to slow economic growth to control inflation. By reducing the growth rate, they can lower inflationary pressures. Increasing loan - interest rates and decreasing available credit are tools of contractionary policies, not positive effects of slow growth. Contractionary policies reduce, not increase, the money supply.

Answer:

It can decrease inflation.