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Based on the Bank of Canada's Monetary Policy Rule,when Inflation

Question 134

Multiple Choice

Based on the Bank of Canada's monetary policy rule,when inflation falls,the Bank of Canada ________ interest rates,hence _________ short-run equilibrium output.


A) increases;increasing
B) increases;decreasing
C) does not change;increasing
D) decreases;increasing
E) decreases;decreasing

Correct Answer:

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