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Due to an economic contraction and business activity slowing, Canada experiences a trend of growing unemployment over a prolonged period. What will be the likely
Due to an economic contraction and business activity slowing, Canada experiences a trend of growing unemployment over a prolonged period. What will be the likely effect of this level of unemployment on the Canadian economy's inflation rate and interest rates (assuming all other factors remain constant)? A)Inflation and interest rates will both fall B)The inflation rate will fall and interest rates will rise C)Inflation and interest rates will both rise D) The inflation rate will rise and interest rates will fall
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