From an Initial Long-Run Macroeconomic Equilibrium, If the Bank of Canada

question 88

Multiple Choice

From an initial long-run macroeconomic equilibrium, if the Bank of Canada anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Bank of Canada would most likely

• A)increase its target for the overnight rate.
• B)extend fewer loans to commercial banks.
• C)purchase government securities.
• D)sell government securities.
• E)tighten mortgage lending rules to prevent a banking crisis.

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