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Basic Question 11 of 15

If a central bank decides to increase interest rates, its monetary policy is said to be ______.

A. contractionary
B. expansionary
C. neutral

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe qualities of effective central banks; contrast their use of inflation, interest rate, and exchange rate targeting in expansionary or contractionary monetary policy; and describe the limitations of monetary policy

CFA® 2024 Level I Curriculum, Volume 1, Module 4.