When the Bank of Canada Fights Inflation by Implementing Open

question 57

Multiple Choice

When the Bank of Canada fights inflation by implementing open market operations, the supply of loanable funds curve shifts ________ and the aggregate demand curve shifts ________.

• A)leftward; leftward
• B)leftward; rightward
• C)rightward; leftward
• D)rightward; rightward
• E)leftward; leftward, and potential GDP decreases

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Definitions:

U.S. Firm

A company or business incorporated or conducting significant operations in the United States.

U.S. Dollars

The official currency of the United States, symbolized as $ and also known as USD.

Department Stores

Large retail establishments offering a wide range of products across multiple departments.

Ad Valorem Duty

A tax charged as a percent of the value of the item.