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Refer to Figure 28-1. If the Bank of Canada raises the target interest rate from 2% to 3%, it is pursuing a(n) ________ monetary policy
Refer to Figure 28-1. If the Bank of Canada raises the target interest rate from 2% to 3%, it is pursuing a(n) ________ monetary policy and the quantity of money demanded will ________.
Select one:
a. expansionary; fall
b. expansionary; not change
c. contractionary; rise
d. contractionary; fall
e. expansionary; rise
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