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If the Bank of Canada Is Facing ________,The Bank Lending

Question 28

Multiple Choice

If the Bank of Canada is facing ________,the bank lending channel provides one explanation for why monetary policy may still be effective even when short-term nominal interest rates equal 0%.


A) an upward-shifting Phillips curve
B) stagflation
C) the zero bound constraint
D) an economy where real GDP has surpassed potential GDP

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