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Suppose the Canadian economy is operating in the relatively flat portion of the SRAS, and the U.S. government imposes a tariff on oil from the
Suppose the Canadian economy is operating in the relatively flat portion of the SRAS, and the U.S. government imposes a tariff on oil from the Alberta oil sands. What would be the appropriate response of Canadian authorities? a. increasing profits taxes on oil companies operating in Canada b. reducing employment subsidies c. imposing an export tariff on Canadian electricity d. reducing the overnight interest rate
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