If the Economy Is Experiencing an Undesired Inflationary Gap,the Bank

question 45

Multiple Choice

If the economy is experiencing an undesired inflationary gap,the Bank of Canada could

• A)increase the supply of money,lowering interest rates,which would shift the AD curve inward.
• B)decrease the demand for money,lowering interest rates,which would shift the AD curve outward.
• C)decrease the supply of money,raising interest rates,which would shift the AD curve inward.
• D)increase the supply of money,lowering interest rates,which would shift the AD curve outward.
• E)shift the investment demand curve to the right by lowering interest rates,which would shift the AD curve outward.

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Definitions:

Refractory Period

A period of time during which a cell or organism cannot repeat a particular action or respond to a stimulus.

Orgasm

The peak of sexual arousal, characterized by intense pleasure accompanied by the release of sexual tensions.

Canadian Population

The total number of people living in Canada, including its diverse ethnic, cultural, and linguistic groups.

Obese

A medical condition characterized by excess body fat accumulation to the extent that it may have a negative effect on health.