1. Has the inflation rate in Canada increased or decreased in the past few years? What about interest rates?
2. If history repeats itself and we see a decline in the rate of money growth, what might you expect to happen to
a. real output
b. the inflation rate, and
c. interest rates?
3. When was the most recent recession?
4. When interest rates fall, how might you change your economic behaviour?
5. Can you think of any financial innovation in the past ten years that has affected you personally? Has it made you better off or worse off? Why?
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