Suppose Canadian Real GDP Is Equal to Potential GDP

question 115

Multiple Choice

Suppose Canadian real GDP is equal to potential GDP.A significant and sustained appreciation of the Canadian dollar would likely lead the Bank to engage in an expansionary monetary policy if the Bank's policy experts traced the cause of the appreciation to

• A)a decrease in the overnight lending rate.
• B)an increase in the desire of non-residents to purchase Canadian financial assets.
• C)an increase in the desire of non-residents to purchase more Canadian goods and services.
• D)a reduction in Canada's core inflation rate.
• E)a recession in Canada.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean of the set.

Mean Purchase

The average value or amount of purchases made over a specific period of time.

Probability

The likelihood or chance of an event occurring.

Sample Size

The number of observations or data points that are selected from a population for the purposes of statistical analysis.