Which of the Following Can Be Taken as an Evidence

question 8

Multiple Choice

Which of the following can be taken as an evidence for the reverse causation between the money growth and the changes in output?

• A)Bank of Canada regularly increases money supply during the Christmas shopping season.
• B)Bank of Canada regularly adjusts the level of money supply based on its forecast of the economic activity.
• C)Prices are procyclical.
• D)Productivity is procyclical.

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