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Indicate how each of the listed variables(GDP, consumption and interest rates change in each of the following separate events. Briefly explain.
a. The recent strengthening of the Canadian dollar causes exports to decline and imports to rise.
b. Provincial and the federal governments in upcoming budgets restrain spending and/or raise taxes in order to move back to fiscal balance
c. The Bank of Canada has moderately tightens monetary policy in the next twelve months.
The variables are Canadian GDP, interest rate, and consumption.
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