Figure 104

-Refer to Figure 10 $\hat{Y}$ ₁,And Real GDP Increases So the C

question 81

Multiple Choice

Figure 10.4

-Refer to Figure 10.4..Suppose the economy's equilibrium starts out with an output gap of $\hat{Y}$ ₁,and real GDP increases so the C $\hat{Y}$ ₂.If the Bank of Canada keeps the money supply constant,money demand will ________ and the nominal interest rate will ________.

• A) increase; increase
• B) increase; decrease
• C) increase; remain constant
• D) remain constant; remain constant

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Definitions:

Investment Option

A choice available for allocating resources with the expectation of generating a return.

Task Force

A temporary group created to focus on a specific project or solve a particular problem.

Ad Hoc

Created or done for a particular purpose as necessary, without being planned in advance.

Temporary Project Team

A group of individuals assembled for a specific project or task with a defined timeframe, disbanding once the project is complete.