Wednesday, March 05, 2008

Unit 3: Slowing economic growth in Canada

The BBC reorts that growth is slowing in Canada and the government has responded by cutting interest rates

http://news.bbc.co.uk/1/hi/business/7277664.stm

a) What policy has the government used to stimulate demand?
b) Using a diagram, explain how the economy should react to the interest rate cut

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