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If,in a Bid to Get Re-Elected,politicians Decide to Decrease Taxes

Question 38

Multiple Choice

If,in a bid to get re-elected,politicians decide to decrease taxes when there is an inflationary gap,what action might the Bank of Canada decide to take?


A) increase the money supply
B) sell government securities to the chartered banks
C) buy government securities from the general public
D) reduce the bank rate

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