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  4. Exam
    Exam 22: The Monetary Policy and Aggregate Demand Curves
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    Because Prices Are Slow to Move in the Short-Run, When
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Because Prices Are Slow to Move in the Short-Run, When

Question 1

Question 1

Multiple Choice

Because prices are slow to move in the short-run, when the Bank of Canada lowers the overnight rate, ________.


A) nominal interest rates rise
B) real interest rates fall
C) inflation falls
D) real interest rates rise

Correct Answer:

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