According to Liquidity-Preference Theory, What Action Taken by the Bank

question 24

Multiple Choice

According to liquidity-preference theory, what action taken by the Bank of Canada would shift the money-supply curve?

• A) if the Bank of Canada engaged in arbitrage
• B) if the Bank of Canada changed the inflation rate
• C) if the Bank of Canada changed the exchange rate
• D) if the Bank of Canada engaged in open-market transactions

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Definitions:

FTP Server

A server that allows for the transfer of files between computers over a network using the File Transfer Protocol.

Firewall

A security system designed to prevent unauthorized access to or from a private network by controlling incoming and outgoing network traffic based on predetermined security rules.

Download A File

The process of transferring a file from a remote server or computer to your own device over a network.

NFC

Near Field Communication (NFC) is a set of communication protocols for communication between two electronic devices over a close range, typically less than 4 cm.