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Suppose the Bank of Canada viewed its monetary policy as being appropriate for keeping output close to potential before any U.S. recession. If the Canadian
Suppose the Bank of Canada viewed its monetary policy as being appropriate for keeping output close to potential before any U.S. recession. If the Canadian government is trying to keep its output (GDP) close to the country's potential, then it must try and keep making goods and getting them sold. Even with a recession in the US, their major trading partner, what types of trade and foreign exchange options can be manipulated to keep the sales to US steady
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