When Does the Supply of Money Increase

question 139

Multiple Choice

When does the supply of money increase?

• A) when the Bank of Canada increases the overnight rate
• B) when the Bank of Canada makes open-market sales
• C) when the Bank of Canada makes open-market purchases
• D) when the Bank of Canada increases the bank rate

---

Definitions:

Production Function

A mathematical relationship expressing the amount of output produced as a function of the quantities of various inputs.

Isocost Equation

An equation that represents all combinations of goods that can be purchased given a fixed cost and the prices of goods.

Input Mix

The combination of various types of inputs used in the production process.

Memo Pads

Stationery items consisting of small sheets of paper for brief notes, reminders, or messages.