Which Statement Best Describes the Impact of Open-Market Purchases by the Bank

question 61

Multiple Choice

Which statement best describes the impact of open-market purchases by the Bank of Canada?

• A) The money supply and the value of money increase.
• B) The money supply increases, which makes the value of money decrease.
• C) The money supply and the value of money decrease.
• D) The money supply decreases, which makes the value of money increase.

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Definitions:

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

McClelland's Theory of Learned Needs

A psychological theory that suggests individuals acquire their needs for achievement, affiliation, and power through life experiences.

Equity Sensitive

An individual's preference for fairness and equality in the distribution of resources and rewards.

Outcome/Input Ratio

A concept related to equity theory, referring to the proportion of rewards (outcomes) received relative to contributions (inputs) in a social exchange or workplace context.