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If the Bank of Canada Decreases the Quantity of Money

Question 205

Multiple Choice

If the Bank of Canada decreases the quantity of money in circulation,interest rates _____,investment spending _____,and the aggregate demand curve shifts to the _____.


A) decrease;increases;right
B) decrease;decreases;left
C) increase;decreases;left
D) increase;decreases;right

Correct Answer:

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