The bank rate is decreased. The central bank sells bonds on the open market. The central bank uses open market operations to conduct contractionary monetary policy. AD decreases AD decreases The central bank uses open mark AD increases uct expansionary monetary policy. The money supply is increased. The Bank of Canada buys bonds from private banks. Price level ADI AD2 AS Real GDP Price level ADI AD2 AS

The bank rate is decreased. The central bank sells bonds on the open market. The central bank uses open market operations to conduct contractionary monetary policy. AD decreases AD decreases The central bank uses open mark AD increases uct expansionary monetary policy. The money supply is increased. The Bank of Canada buys bonds from private banks. Price level ADI AD2 AS Real GDP Price level ADI AD2 AS

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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