In the Simple Deposit Expansion Model, an Expansion in Chequable

question 20

Multiple Choice

In the simple deposit expansion model, an expansion in chequable deposits of $1000 when the desired reserve ratio is equal to 10 percent implies that the Bank of Canada ________.

• A) sold $1000 in government bonds
• B) sold $100 in government bonds
• C) purchased $1000 in government bonds
• D) purchased $100 in government bonds

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Definitions:

Strange Situation

A research method used in developmental psychology to assess attachment styles in children by observing their reactions when separated and reunited with their caregivers.

Attachment Style

Patterns of bonding that form between a child and caregiver, influencing emotional and social development and relationships later in life.

Infants

Young children, typically under one year of age, who are in the early stages of development.

Low Birthweight

Refers to a birth weight of a newborn less than 2,500 grams (5 pounds, 8 ounces), which may be linked to health issues.