11. Suppose that the Bank of Canada decides to expand the money supply. a. Why would it...

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11. Suppose that the Bank of Canada decides to expand the money supply.

a. Why would it be counterproductive for the Bank of Canada to fix the value of the exchange rate?

b. What is the effect of this policy on the interest rate in the long run? How do you know?

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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