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If There Were a Large and Persistent Recessionary Gap, an Appropriate

Question 3

Multiple Choice

If there were a large and persistent recessionary gap, an appropriate monetary policy could include


A) reducing the Bank's target for the overnight interest rate.
B) the Bank of Canada selling government securities to the public.
C) increasing the overnight lending rate.
D) decreasing reserves available to the commercial banks.
E) increasing the bank rate.

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