The BOC (Bank of Canada) implements contractionary monetary policy (MS).

As a result, what will be the effect on:

i-rates

no effect

increase

decrease

create "bank run"

the bond market

foreigners will sell off Canadian bonds

cause political tension with the United States

the Federal government will be forced to increase debt

foreigners will buy more Canadian bonds

the value of the C$ (Canadian dollar)

be determined by "The Fed"

depreciate (decrease)

appreciate (increase)

will not change

exports (x) will

decrease because they are cheaper

decrease because they are more expensive

increase because they are cheaper

increase because they are more expensive

imports (m) will

decrease because they are cheaper

decrease because they are more expensive

increase because they are cheaper

increase because they are more expensive

net exports (X=x-m) will

decrease

increase

stay the same

not enough information to answer the question

If equilibrium is in the Intermediate range of the SRAS, Canada's economy will

decrease GDP

increase GDP

not effect GDP

not enough information to answer the question