When the Bank of Canada fights recession by lowering the overnight loan rate, the supply of loanable funds curve shifts ________, and the aggregate demand curve shifts ________.
A) leftward; leftward
B) leftward; rightward
C) rightward; leftward
D) rightward; rightward
E) rightward and the demand for loanable funds curve shifts rightward; rightward
Correct Answer:
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Q65: A decrease in the overnight loans rate
A)increases
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