If the Bank of Canada raises or lowers interest rates too late, it could result in a ________ policy that destabilizes the economy.

Name: If the Bank of Canada raises or lowers interest rates too late, it could result in a ________ policy that destabilizes the economy.
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Question

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If the Bank of Canada raises or lowers interest rates too late, it could result in a procyclical policy that reinforces the business cycle, exacerbating economic booms and contractions, and potentially destabilizing the economy.

If the Bank of Canada Raises or Lowers Interest Rates