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If the Bank of Canada Decides to Increase Interest Rates

Question 30

Multiple Choice

If the Bank of Canada decides to increase interest rates to fight off potential inflation,and their policy action keeps the inflation rate stable,then other things equal,this would result in


A) the IS curve shifting to the right.
B) the IS curve shifting to the left.
C) the MP curve shifting up.
D) the MP curve shifting down.

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