Multiple Choice
An expansionary fiscal policy in Canada might unintentionally cause demand-pull inflation if:
A) the dollar unexpectedly appreciates while the expansionary policy is in place.
B) the dollar unexpectedly depreciates while the expansionary policy is in place.
C) the policy produces severe crowding out.
D) our trading partners experience recession during the time of the fiscal policy action.
Correct Answer:
Verified
Correct Answer:
Verified
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