Which of the Following Events Would Justify the Bank of Canada

question 18

Multiple Choice

Which of the following events would justify the Bank of Canada implementing an expansionary monetary policy,while maintaining its commitment to its inflation target?

• A)An appreciation of the Canadian dollar due to increases in the world prices of Canadian exports.
• B)A depreciation of the Canadian dollar due to persistent current account deficits of Canada.
• C)An oil-price shock that results in Canadian inflation.
• D)The U.S.economy increasing its demand for Canadian goods and services.
• E)A major decline in the Canadian stock market.

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Definitions:

Hyperphagia

Overeating that leads to significant weight gain.

Lesioned

Having suffered damage or injury to a body part, organ, or tissue, often referring to specific areas of the brain in medical contexts.

Hypothalamus

A small region of the brain that plays a critical role in hormone production, regulation of body temperature, hunger, thirst, and circadian rhythms.

Electric Current

The flow of electric charge through a conductor, typically measured in amperes.