When the inflation rate is 5 percent, the Bank of Canada will sell bonds to raise interest rates and decrease aggregate demand.

Name: When the inflation rate is 5 percent, the Bank of Canada will sell bonds to raise interest rates and decrease aggregate demand.
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This is true as one way to combat inflation is to raise interest rates, which the Bank of Canada can do by selling bonds. This encourages saving and reduces borrowing, ultimately decreasing aggregate demand.

When the Inflation Rate Is 5 Percent, the Bank of Canada