How do the$$ Bank's actions influence real$$ GDP$?$

Question content area bottom

Part $1$

The Bank of$$ Canada's actions influence real GDP because other things remaining the$$ same, the

lowerlower

the real interest$$ rate, the$\_\_\_\_\_\_\_$ is the amount of consumption expenditure and the$\_\_\_\_\_\_\_$ is the amount of saving.

A$.$

greatergreater$$;

greatergreater

B$.$

greatergreater$$;

smallersmaller

C$.$

smallersmaller$$;

greatergreater

D$.$

smallersmaller$$;

smallersmaller

Part $2$

The Bank of$$ Canada's actions influence real GDP because other things remaining the$$ same, the

lowerlower

the real interest$$ rate, the$\_\_\_\_\_\_\_$ is the amount of investment and the$\_\_\_\_\_\_\_$ are net exports.

A$.$

smallersmaller$$;

greatergreater

B$.$

smallersmaller$$;

smallersmaller

C$.$

greatergreater$$;

greatergreater

D$.$

greatergreater$$;

smallersmaller

Part $3$

How long does it take for real GDP to respond to the$$ Bank's policy$$ changes?

Real GDP responds to changes in the overnight rate$\_\_\_\_\_\_\_.$

A$.$

approximately one year later

B$.$

within a month

C$.$

slower than inflation responds

D$.$

almost immediately