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If the Bank of Canada Were to Increase the Money

Question 45

Multiple Choice

If the Bank of Canada were to increase the money supply, other things being equal, we would expect the aggregate expenditure curve to shift


A) downward and the aggregate demand curve to shift to the right.
B) downward and the aggregate demand curve to shift to the left.
C) downward but the aggregate demand curve will remain unchanged.
D) upward and the aggregate demand curve to shift to the left.
E) upward and the aggregate demand curve to shift to the right.

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