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Imagine that it is now April, 2024 and the Canadian economy has made a complete recovery from the Covid recession. Economists feel that we are
Imagine that it is now April, 2024 and the Canadian economy has made a complete recovery from the Covid recession. Economists feel that we are heading to the peak of the business cycle. Rather than handle this through fiscal policy, it is decided that the Bank of Canada will take the lead with monetary policy. Describe the two main actions that our central bank might take to tighten up this economy, explaining how each action will have the desired impact .
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