A significant reduction of the official interest rate by the Bank of Canada woul

Question

A significant reduction of the official interest rate by the Bank of Canada would be expected to E. increase consumption spending on domestic goods, increase investment spending on domestic goods. increase net foreign spending on domestic goods. shift up the expenditure line. increase consumption, investment, and net foreign spending, and shift up the expenditure line. If potential output equals 10,000 and short-run equilibrium output equals 8,500, there is a gap and.he Bank of Canada must real interest ta.es m order to close the gap. recessionary; raise recessionary; lower recessionary; not change expansionary; raise expansionary; lower Which of the following will shift the aggregate demand (ADI) curve to the right" Income taxes are raised. The government increases spending on education. Consumers become pessimistic about the future. Business managers become pessimistic about the future. Foreign economies fall into recession, reducing their demand for domestic exports. A downward shift of the Bank of Canada's monetary policy rule corresponds to a aggregate demand (ADI) curve, and a decrease in autonomous aggregate demand corresponds a the aggregate demand (ADI) curve. A shift to the left of; movement up shift to the left of; shift to the right of movement up: movement down movement up; shift to the right of shift to the right of; shift to the left of

Explanation / Answer

29 E

30 B

recessionary lower

31 B

32 E

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