Use the following to answer questions: 
-(Figure: The Money Supply and Aggregate Demand) Refer to Figure: The Money Supply and Aggregate Demand.If the economy is in an inflationary gap,the Bank of Canada will _____ Treasury bills,which will _____ the money supply and _____ interest rates.This is shown in panel _____.
A) buy;increase;lower; (a)
B) sell;decrease;raise; (b)
C) buy;decrease;raise; (b)
D) sell;increase;raise; (b)
Correct Answer:
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Q145: In the short run, the interest rate
Q147: In the long run, the interest rate
Q148: If the economy is at potential output
Q149: Use the following to answer questions:
Q150: If the economy is at potential output
Q151: Use the following to answer questions:
Q152: If the economy is at potential output
Q155: When nominal wages increase, the short-run aggregate
Q157: Which statement describes inflation targeting?
A) Inflation targeting
Q158: Use the following to answer questions:
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