Multiple Choice
Suppose the government wants to eliminate a recessionary gap.Which of the following strategies should the Bank of Canada implement?
A) The Bank of Canada should increase the money supply and increase the interest rate.
B) The Bank of Canada should increase the money supply and decrease the interest rate.
C) The Bank of Canada should decrease the money supply and increase the interest rate.
D) The Bank of Canada should decrease the money supply and decrease the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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