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) increase its target for the overnight rate.
B) extend fewer loans to commercial banks.
C) purchase government securities.
D) sell government securities.
E) tighten mortgage lending rules to prevent a banking crisis.