Question

Tight money policy is _____.

A. the belief that the money supply is the most important factor in macroeconomic performance.
B. the time it takes for monetary policy to have an effect.
C. monetary policy that reduces the money supply.
D. monetary policy that increases the money supply

Answer 1

I believe it's C. If I am wrong I strongly apologize.

Answer 2

Tight money policy is "monetary policy that reduces the money supply".

Tight monetary policy suggests the Central Bank (or specialist responsible for Monetary Policy) is trying to decrease the interest for cash and limit the pace of monetary extension. More often than not, this includes expanding financing costs.  

The aim of tight monetary policy is for the most part to lessen inflation.  

With higher loan costs there will be a log jam in the rate of financial development. This happens because of the reality higher loan fees increment the expense of obtaining, and accordingly lessen purchaser spending and venture, prompting lower financial development.