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Suppose the Economy Is Operating Below Its Full Employment Level

Question 115

Multiple Choice

Suppose the economy is operating below its full employment level.By using an expansionary monetary policy,the Bank of Canada can


A) raise real national income without increasing the price level.
B) raise real national income and the price level.
C) raise real national income and decrease the price level.
D) raise the price level alone,but cannot increase real national income.

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