Contractionary economy
Explanation:
This type of economic stance decreases the flow of money in the market to counter the decrease in value of it to increase borrowing power.
This leads to a decrease in consumer spending and an overall decrease in nominal output or GDP.
This stance is usually taken up to counter inflation by curbing the flow of money. While this slows down the economy it can also help in curbing the taxes and relieve the population from inflation through curbed spending and increasing borrowing power.
