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Why is the slow growth that can result from a contractionary policy a positive effect? it can increase loan interest rates. it can decrease available credit. it can increase the money supply. it can decrease inflation.

Sagot :

The slow growth that can result from a contractionary policy is a positive effect because it can decrease inflation.

What is a contractionary policy?

A contractionary policy are policy steps taken by the government of a country or its Central bank to reduce the money supply in the economy. When money supply is reduced, inflation is also reduced.

An example of a contractionary policy is when the government reduces its spending or increases taxes.

To learn more about contractionary policy, please check: https://brainly.com/question/9504329

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Answer:

its D

Explanation:

Edg 2022