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Contractionary monetary policy is designed to:
A. reduce long-term interest rates.
B. increase the available money supply.
C. reduce overall economic activity.
D. offer treasury securities for sale.

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Contractionary monetary policy is designed to: C. reduce overall economic activity.

What is a monetary policy?

A monetary policy is also referred to as a fiscal policy and it can be defined as the use of government expenditures (spending) and revenues (taxation), so as to influence macroeconomic conditions such as:

  • Aggregate Demand (AD)
  • Inflation
  • Employment within a country.

The types of monetary policy.

In Economics, there are two main types of monetary policy and these include the following:

  1. Expansionary monetary policy.
  2. Contractionary monetary policy.

Generally, a contractionary monetary policy is designed and adopted by the government to reduce overall economic activity in a particular country.

Read more on monetary policy here: https://brainly.com/question/13926715

reduce overall economic activity.

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