In the Long Run, If the Bank of Canada Decreases

question 12

Multiple Choice

In the long run, if the Bank of Canada decreases the rate at which it increases the money supply, what will happen to inflation and unemployment?

• A) Inflation and unemployment will be higher.
• B) Inflation will be higher and unemployment will be lower.
• C) Inflation will be lower and unemployment will be higher.
• D) Inflation will be lower and unemployment will stay the same.

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Definitions:

Outdated

Pertains to something that is no longer current, useful, or relevant due to the passage of time or advances in technology or knowledge.

Voidable

A term referring to a contract that may be legally declared invalid or unenforceable by one of the parties.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person.

Undue Influence

An illicit means of persuasion that makes someone act against their own interests by the excessive influence of another person.