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Complete control over the size of the money supply

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Reference no: EM132503376

Answer the following true, false, or uncertain with an explanation motivating your answer.

a. The Bank of Canada has complete control over the size of the money supply in Canada.

b. Fiscal policy has a relatively long inside lag, but short outside lag. In contrast, monetary policy has a relatively short inside lag but long outside lag. This is an argument for passive policy.

Reference no: EM132503376

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