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Assume the Canadian economy is currently at potential GDP. If there is a sharp decrease in Canadian autonomous exports due to higher U.S. trade barriers,

Assume the Canadian economy is currently at potential GDP. If there is a sharp decrease in Canadian autonomous exports due to higher U.S. trade barriers, what is the likely stabilization policy implemented by the Bank of Canada? (a) Increase autonomous government expenditures. Decrease taxes. (b) It will increase the target overnight rate and sell government bonds. (c) It will increase the target overnight rate and buy government bonds. (d) It will decrease the target overnight rate and sell government bonds. (e) It will decrease the target overnight rate and buy government bonds

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