Exhibit 14-3 -Refer to the Graph in the Exhibit.How Could the Bank

Multiple Choice

Exhibit 14-3

-Refer to the graph in the exhibit.How could the Bank of Canada return the economy to potential output?  

A)  by decreasing government spending 
B)  by decreasing excess reserves in the banking system 
C)  by selling Canadian government bonds to banks 
D)  by increasing the bank rate