The Bank of Canada has set money supply (MS) at $35B and the total demand for money, Md=Dt+Da, is given. The Canadian economy is in equilibrium in the Keynesian range of the SRAS curve at $60B (without I) and the expenditure multiplier is 1.5. What is the equilibrium interest rate? 2.0 1.75 1.5 35 Based upon this interest rate, how much gross private domestic investment (I) would there be? 60 70 80 1.75 If this gross private domestics investment (I) was added into the economy, determine the new GDPe. 160 180 200 220 Suppose, the Bank of Canada has determined that GDPf is $150B. What type of gap is Canada experiencing? Refractionary Inflationary Recessionary Trumpessionary Calculate the new level of gross private domestic investment (I) that would cause Canadas GDPe to change to $150B? 60 80 90 100 Determine the new interest rate that will achieve this level of gross private domestic investment (I). 1.25 1.5 1.75 2.0 In order to change the interest rate, determine the BOCs new level of money supply (MS). 30 35 40 45

The Bank of Canada has set money supply (MS) at $35B and the total demand for money, Md=Dt+Da, is given. The Canadian economy is in equilibrium in the Keynesian range of the SRAS curve at $60B (without I) and the expenditure multiplier is 1.5.

What is the equilibrium interest rate?

2.0

1.75

1.5

35

Based upon this interest rate, how much gross private domestic investment (I) would there be?

60

70

80

1.75

If this gross private domestics investment (I) was added into the economy, determine the new GDPe.

160

180

200

220

Suppose, the Bank of Canada has determined that GDPf is $150B. What type of gap is Canada experiencing?

Refractionary

Inflationary

Recessionary

Trumpessionary

Calculate the new level of gross private domestic investment (I) that would cause Canadas GDPe to change to $150B?

60

80

90

100

Determine the new interest rate that will achieve this level of gross private domestic investment (I).

1.25

1.5

1.75

2.0

In order to change the interest rate, determine the BOCs new level of money supply (MS).

30

35

40

45