Predicted Results

From the Monetary policy related article I summarized, this would be my predicted results of aggregate supply and demand decreases due to a CONTRACTIONARY policy. Since the Bank of Jamaica is decreasing the rates payable which in the end might increase taxes, this would be categorized as contractionary policyin efforts to but a drag on aggregate demand. This would be a great idea for Jamaica in my opinion because their economy is suffering badly right now so they need to decrease any extra money spent and instead focus on other forms of revenue such as increased taxes.

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