1. Explain what would happen to the value of Canadian currency and short run economies performance of Canada if U.S imposes expansionary monetary policy.

 2. Explain transition mechanism for the expansionary monetary policy by using florigen exchange market, bond market, market of money, and AS-Ad model, 

3. Explain what lessons policy makers learn from the Philips Curve. 

4. Explain two policy recommendations that can reduce the natural rate of unemployment

Answer rating: 100% (QA)

1 If the US imposes an expansionary monetary policy it typically involves actions by the Federal Reserve such as lowering interest rates or increasing the money supply to stimulate economic growth and ... View the full answer