If the current unemployment rate is 5%, under which of the following circumstances would you expect the Bank of Canada to use expansionary monetary policy?
A) if the natural rate of unemployment is below 5%
B) if the natural rate of unemployment is above 5%
C) if the inflation rate is above 5%
D) if the inflation rate is below 5%
E) if the inflation rate is exactly 5%
Correct Answer:
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