When the Bank of Canada raises the overnight loans rate, other short- term interest rates
A) rise, consumption expenditure, investment and net exports increase, and the aggregate demand curve shifts rightward.
B) fall, consumption expenditure, investment and net exports decrease, and the aggregate demand curve shifts leftward.
C) rise, consumption expenditure, investment and net exports decrease, and the aggregate demand curve shifts leftward.
D) fall, consumption expenditure, investment and net exports increase, and the aggregate demand curve shifts rightward.
E) none of the above
Correct Answer:
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