In Practice,the Bank of Canada Uses Monetary Policy to Reduce

question 35

Multiple Choice

In practice,the Bank of Canada uses monetary policy to reduce undesirable fluctuations in real GDP by

• A)controlling business investment expenditures directly.
• B)controlling government spending.
• C)influencing market interest rates through changes in its target for the overnight interest rate.
• D)directly influencing the money supply which affects the interest rate and hence,consumption and investment.
• E)targeting the money supply directly.

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Definitions:

Delirium

A rapid onset of confusion and changes in cognitive function, resulting from physiological causes such as infection, medication, or substance withdrawal.

Neurocognitive Disorder

A class of conditions that affect cognitive functions such as memory, decision-making, and attention, due to various neurological causes.

Intellectual Disability

A term used for significantly below average intellectual functioning and adaptive behaviors, which manifest during the developmental period.

Biological Factors

Aspects related to genetics, physiology, and biochemistry that influence an individual's behavior, health, and development.