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Why might the Bank of Canada decrease short-term interest rates? Question 42Answer a. Unexpected increase in Canadian GDP due to unexpected decline in Canada's current

Why might the Bank of Canada decrease short-term interest rates? Question 42Answer a. Unexpected increase in Canadian GDP due to unexpected decline in Canada's current account deficit. b. Rapidly appreciating Canadian dollar due to sharp increase in commodity prices. c. Rapid decrease in long-term bond yields due to increase in inflation expectations. d. Rapid increase in long-term bond yields due to increase in inflation expectations

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