According to Real Business Cycle Theorists, an Increase in Total

question 43

Multiple Choice

According to real business cycle theorists, an increase in total factor productivity could lead to an increase in the nominal money supply due to

• A) the cyclical behaviour of tax collections and attempts by the Bank of Canada to stabilize real output.
• B) Bank of Canada attempts to stabilize real output and the price level.
• C) Bank of Canada attempts to stabilize the price level and banking sector expansion of deposit money.
• D) banking sector expansion of deposit money and the cyclical behaviour of tax collections.
• E) Bank of Canada attempts to stabilize business cycle fluctuations.

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