The Diagrams Below Illustrate Two Alternative Approaches to Implementing Monetary

question 45

Multiple Choice

The diagrams below illustrate two alternative approaches to implementing monetary policy.The economy begins in monetary equilibrium with the interest rate equal to 2% and the money supply equal to . FIGURE 28-1 Refer to Figure 28-1.If the Bank of Canada raises the target interest rate to 3%,as shown in part (i) ,then it must accommodate the resulting ________ in quantity of money demanded by ________ in financial markets.

• A)increase; selling government securities
• B)decrease; selling government securities
• C)increase; buying government securities
• D)decrease; buying government securities

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Definitions:

Role Congruity Theory

Mainly applied to the gender gap in leadership – because social stereotypes of women are inconsistent with people’s schemas of effective leadership, women are evaluated as poor leaders.

Gender Gap

The disparity in outcomes or attitudes between men and women, often observed in political, economic, or social contexts.

Leadership Positions

Roles or titles within organizations that carry responsibility for guiding or managing groups or individuals.

Group Prototypicality

The degree to which a member of a group represents the average or ideal characteristics of that group, influencing their influence and status within the group.