In 2007 and 2008,Canada Was Affected by the Global Financial

question 108

Multiple Choice

In 2007 and 2008,Canada was affected by the global financial crisis that had begun with the U.S.housing collapse.By early 2009,the Canadian economy was in a recession with Y < Y*.What economic policies were implemented to close the output gap?

• A)expansionary monetary policy
• B)expansionary fiscal policy
• C)contractionary monetary policy and contractionary fiscal policy
• D)contractionary monetary policy and expansionary fiscal policy
• E)expansionary monetary policy and expansionary fiscal policy

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