If the Bank of Canada were to respond to a slowdown in the domestic economy by easing monetary policy,all other things being equal,one would predict,in the short run,a(n)
A) increase in the real interest rate,an increase in demand for the dollar,and an appreciation of the dollar.
B) decrease in the real interest rate,an increase in demand for the dollar,and an appreciation of the dollar.
C) decrease in the real interest rate,a decrease in demand for the dollar,and a depreciation of the dollar.
D) increase in the real interest rate,an decrease in demand for the dollar,and a depreciation of the dollar.
E) increase in the real interest rate,an increase in demand for the dollar,and a depreciation of the dollar.
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