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Suppose Canada is facing a recessionary gap. and the Bank of Canada wants to use monetary policy to stabilize the economy. a} What kind of

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Suppose Canada is facing a recessionary gap. and the Bank of Canada wants to use monetary policy to stabilize the economy. a} What kind of policy should it follow? b} How will it impact the following: - bond prices interest rates investment the exchange rate net exports real GDP the price level. c} Illustrate your analysis graphically with explanations

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