Question: Indicate whether each of the following is TRUE or FALSE

?

If the economy is experiencing a recessionary gap. scal policy dictates that a reduction in th tax rate is the appropriate course of action If the economy is experiencing an inationary gap, monetary policy dictates that the government should switch their deposits from the Bank of Canada to the chartered banks If managed correctly, an economy can have both low ination and a low unemployment rate Government decits are the accumulations of annual debts As the nominal interest rate increases. the quantity demanded of money decreases If the exchange rate increases (u$lc$). then the ination rate will also increase 7. Monetarists believe that the velocity of money and the real GDP are stable