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-If the Bank of Canada Increased the Supply of Money,the

Question 34

Multiple Choice

  -If the Bank of Canada increased the supply of money,the: A) S<sub>m</sub> curve would shift leftward and the equilibrium interest rate would rise B) S<sub>m</sub> curve would shift rightward and the equilibrium interest rate would fall C) D<sub>m</sub> curve would shift leftward and the equilibrium interest rate would fall D) S<sub>m</sub> curve would shift rightward, but the effect on the equilibrium interest rate would be uncertain E) D<sub>m</sub> curve would shift rightward and the equilibrium interest rate would rise
-If the Bank of Canada increased the supply of money,the:


A) Sm curve would shift leftward and the equilibrium interest rate would rise
B) Sm curve would shift rightward and the equilibrium interest rate would fall
C) Dm curve would shift leftward and the equilibrium interest rate would fall
D) Sm curve would shift rightward, but the effect on the equilibrium interest rate would be uncertain
E) Dm curve would shift rightward and the equilibrium interest rate would rise

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