At the End of the 1970s,the Inflation Rate in Canada

question 109

Multiple Choice

At the end of the 1970s,the inflation rate in Canada had exceeded 10%.This high inflation was due mainly to

• A)external pressures on the Canadian dollar.
• B)steadily decreasing factor prices.
• C)steadily decreasing factor prices and a contractionary monetary policy.
• D)a substantial negative supply shock that was partly validated by monetary policy.
• E)the extremely high wage increases being won by strong labour unions.

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Definitions:

Board Members

Board members are individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Leveraged Buyout

A financial transaction in which a company is bought using a significant amount of borrowed money to meet the cost of acquisition.

Debt

An amount of money borrowed by one party from another, typically used by companies and governments to finance their operations.

Acquiring Company

A company that purchases or acquires another company, typically to expand its operations or enter new markets.