Given a recessionary gap,the Bank of Canada will use monetary policy to _____ interest rates and _____ aggregate demand.

Name: Given a recessionary gap,the Bank of Canada will use monetary policy to _____ interest rates and _____ aggregate demand.
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Question

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To correct a recessionary gap, the Bank of Canada would want to decrease interest rates to stimulate borrowing and investment, which would in turn increase aggregate demand. This is known as expansionary monetary policy.

Given a Recessionary Gap,the Bank of Canada Will Use Monetary