Expansionary Output Gaps Are Eliminated Through

Multiple Choice

Expansionary output gaps are eliminated through

A) rising inflation and higher real interest rate settings by the Bank of Canada.
B) rising inflation and lower real interest rate settings by the Bank of Canada.
C) falling inflation and lower real interest rate settings by the Bank of Canada.
D) falling inflation and higher real interest rate settings by the Bank of Canada.
E) unchanging inflation and lower real interest rate settings by the Bank of Canada.