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A Monetary Growth Rule Means That

Question 217

Multiple Choice

A monetary growth rule means that


A) the Bank of Canada will lower interest rates if it thinks a recession is on the horizon.
B) the Bank of Canada will raise interest rates if it thinks the economy is growing faster than potential.
C) the money supply should grow at a constant rate.
D) the money supply should grow in response to economic conditions.
E) the money supply should grow at the same rate as the population.

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