The IS-MP Model Assumes the Bank of Canada Targets ________,And

Multiple Choice

The IS-MP model assumes the Bank of Canada targets ________,and the IS-LM model assumes the Bank of Canada targets ________.

A) the expected inflation rate; the unemployment rate
B) the short-term nominal interest rates; the money supply
C) the output gap; the long-term real interest rate
D) short-term real interest rates; the expected inflation rate