When the Bank of Canada buys bonds, exports
A) increase and imports decrease, so net exports increase.
B) and imports both increase, so the effect on net exports is unclear.
C) decrease and imports increase, so net exports decrease.
D) and imports both decrease, so the effect on net exports is unclear.
E) and imports both increase, so net exports increase.
Correct Answer:
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Q85: When the Bank of Canada sells bonds,
Q86: Long-run interest rates tend to be higher
Q87: If the Bank of Canada buys bonds
Q88: When the Bank of Canada lowers interest
Q89: When the Bank of Canada lowers interest
Q91: The overnight rate, the prime rate, and
Q92: The overnight rate, the prime rate, and
Q93: Lower interest rates create a
A) positive demand
Q94: Higher interest rates create a
A) positive demand
Q95: When the Bank of Canada buys bonds,
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