Problemas
A cont ractiona y policy means that the Fed is attempting to increase the size of the nation's money supply decrease the size of the nation's money supply
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Respuesta
The Fed is attempting to decrease the size of the nation's money supply.
Explicación
## Step 1A contractionary monetary policy is a form of monetary policy that is typically used to combat inflation. This policy involves the reduction of the money supply in the economy.## Step 2The Federal Reserve (Fed), which is the central bank of the United States, uses this policy to increase interest rates. The goal of this policy is to reduce the money supply in the economy.## Step 3The reduction of the money supply in the economy is done by increasing the interest rates. This is because higher interest rates make borrowing money more expensive, which in turn reduces the money supply in the economy.