Monetary policy used to correct an inationary gap causes the Canadian interest rate differential to O A. increase, leading to an appreciation of the Canadian
Monetary policy used to correct an inationary gap causes the Canadian interest rate differential to O A. increase, leading to an appreciation of the Canadian dollar, increasing net exports, and off-setting the domestic transmission mechanism. 0 B. decrease, leading to a depreciation of the Canadian dollar, increasing net exports, and reinforcing the domestic transmission mechanism. 0 C. increase, leading to a depreciation of the Canadian dollar, increasing net exports, and off-setting the domestic transmission mechanism. D. increase, leading to an appreciation of the Canadian dollar, decreasing net exports, and reinforcing the domestic transmission mechanism
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