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Finding the value of the canadian dollar

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Reference no: EM132601253

Suppose the Bank of Canada decreases its target for the overnight interest rate.

a) Briefly explain what effect, if any, this has on the amount of money in the economy.

b) Briefly explain what effect, if any, this has on the value of the Canadian Dollar.

c) Briefly explain what effect this has on real GDP (in the short-run).

Reference no: EM132601253

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