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A Decrease in the Interest Rate by the Bank of Canada

Question 167

Multiple Choice

A decrease in the interest rate by the Bank of Canada based on a given monetary policy rule represents a ________ the aggregate demand (ADI) curve,but decrease in the interest rate resulting from a downward shift in the Bank of Canada's monetary policy rule represents a _________ the aggregate demand (ADI) curve.


A) shift to the left of;movement up
B) shift to the left of;shift to the right of
C) movement up;movement down
D) movement up;shift to the left of
E) movement down;shift to the right of

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