Based on the Bank of Canada's Monetary Policy Rule,when Inflation

question 168

Multiple Choice

Based on the Bank of Canada's monetary policy rule,when inflation rises,the Bank of Canada ________ interest rates,hence _________ short-run equilibrium output.

• A) increases;increasing
• B) increases;decreasing
• C) does not change;increasing
• D) decreases;increasing
• E) decreases;decreasing

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