When the Bank of Canada engages in monetary "easing",it ________ the real interest more than normal,which _________ short-run equilibrium output.
A) lowers;decreases
B) lowers;increases
C) lowers;does not change
D) raises;decreases
E) raises;increases

Question

Quizplus · Accepted Answer

Monetary easing typically involves lowering interest rates to stimulate economic activity, which increases short-run equilibrium output.

When the Bank of Canada Engages in Monetary "Easing",it ________