If the Bank of Canada targets the money supply, and the money demand curve shifts to the left, then the Bank of Canada
A) cannot maintain the money supply target.
B) can maintain the money supply target, but at a lower interest rate.
C) can maintain the money supply target, but at a higher interest rate.
D) can maintain the money supply target with no change in the interest rate.
E) cannot maintain the money supply target without a change in the exchange rate.
Correct Answer:
Verified
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