If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:

If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:

i. Higher interest payments on its bank borrowing.

ii. Falling credit based sales.

iii. Higher income and corporate taxes.

iv. Lower sales to government agencies.

v. Difficulties in securing working capital

vi. Higher prices for imported components.
A . (i), (ii) and (vi) only
B . (i), (ii) and (v) only
C . (ii), (iii) and (iv) only
D . (i), (iii) and (iv) only

View Answer

Answer: B