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What Would Constitute Contractionary Monetary Policy by the Bank of Canada

Question 35

Multiple Choice

What would constitute contractionary monetary policy by the Bank of Canada?


A) open market purchases of government securities and a cut in the bank rate
B) an increase in tariffs on imported goods and a decrease in foreign aid
C) an increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit
D) open market sales of government securities and an increase in the bank rate

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