From an Initial Long-Run Macroeconomic Equilibrium, If the Bank of Canada

Multiple Choice

From an initial long-run macroeconomic equilibrium, if the Bank of Canada anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Bank of Canada would most likely

A) decrease interest rates.
B) increase interest rates.
C) decrease income tax rates.
D) increase income tax rates.
E) leave interest rates unchanged.