Contractionary Monetary Policy Occurs When

Multiple Choice

Contractionary monetary policy occurs when

A) a central bank acts to decrease the money supply in an effort to control an economy that is expanding too quickly.
B) Congress and the president increase taxes in an effort to control an economy that is expanding too quickly.
C) Congress and the president decrease taxes in an effort to stimulate the economy.
D) a central bank acts to increase the money supply in an effort to stimulate the economy.
E) a central bank acts to increase government spending in an effort to stimulate the economy.