If the Bank of Canada conducts open-market sales, how do the money supply and the aggregate demand change? a. The money supply increases, and aggregate demand shifts left. b. The money supply decreases, and aggregate demand shifts right. c. The money supply decreases, and aggregate demand shifts left. d. The money supply increases, and aggregate demand shifts right.
If the Bank of Canada conducts open-market sales, how do the money supply and the aggregate demand change? a. The money supply increases, and aggregate demand shifts left. b. The money supply decreases, and aggregate demand shifts right. c. The money supply decreases, and aggregate demand shifts left. d. The money supply increases, and aggregate demand shifts right.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the Bank of Canada conducts open-market sales, how do the money supply and the aggregate
a. The money supply increases, and aggregate demand shifts left.
b. The money supply decreases, and aggregate demand shifts right.
c. The money supply decreases, and aggregate demand shifts left.
d. The money supply increases, and aggregate demand shifts right.
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