The aggregate demand (ADI)curve shifts to the right if,for any given inflation rate,the Bank of Canada ________ interest rates more than normal,making monetary policy _________.
A) raises;"easier"
B) raises;"tighter"
C) raises;faster
D) lowers;"easier"
E) lowers;"tighter"

Question

Quizplus · Accepted Answer

When the Bank of Canada lowers interest rates, it makes borrowing cheaper, encouraging spending and investment, which shifts the aggregate demand curve to the right, making monetary policy "easier".

The Aggregate Demand (ADI)curve Shifts to the Right If,for Any