Because Prices Are Sticky in the Short-Run, When the Bank

question 3

Multiple Choice

Because prices are sticky in the short-run, when the Bank of Canada raises the overnight rate, ________.

• A) nominal interest rates fall
• B) real interest rates rise
• C) inflation falls
• D) real interest rates fall

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Definitions:

Transvestism

Engaging in the behavior and attire commonly connected with the opposite gender.

Homosexuality

The sexual and emotional attraction to individuals of the same sex.

Genital Anomaly

A congenital condition in which the external sex organs are developed differently than typical male or female genitalia, often requiring medical evaluation and possibly intervention.

Variety and Diversity

The presence of differences and a range of various types within a group, setting, or system, often valued for enhancing richness and creativity.