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If the Bank of Canada Pursues an Expansionary Monetary Policy

Question 119

Multiple Choice

If the Bank of Canada pursues an expansionary monetary policy,


A) interest rates will rise,there will be a capital outflow,and the Canadian dollar will depreciate.
B) interest rates will rise,there will be a capital inflow,and the Canadian dollar will appreciate.
C) interest rates will fall,there will be a capital inflow,and the Canadian dollar will depreciate.
D) interest rates will fall,there will be a capital outflow,and the Canadian dollar will appreciate.
E) interest rates will fall,there will be a capital outflow,and the Canadian dollar will depreciate.

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