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When the Bank of Canada Fights Inflation by Implementing Open

Question 7

Multiple Choice

When the Bank of Canada fights inflation by implementing open market operations, the supply of loanable funds curve shifts _______ and the aggregate demand curve shifts _______.


A) rightward; rightward
B) leftward; rightward
C) leftward; leftward
D) rightward; leftward
E) leftward; leftward, and potential GDP decreases

Correct Answer:

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