In 2007 and 2008,Canada Was Affected by the Global Financial

question 108

Multiple Choice

In 2007 and 2008,Canada was affected by the global financial crisis that had begun with the U.S.housing collapse.By early 2009,the Canadian economy was in a recession with Y < Y*.What economic policies were implemented to close the output gap?

• A)expansionary monetary policy
• B)expansionary fiscal policy
• C)contractionary monetary policy and contractionary fiscal policy
• D)contractionary monetary policy and expansionary fiscal policy
• E)expansionary monetary policy and expansionary fiscal policy

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Definitions:

Bonds Payable

Bonds payable are long-term liabilities representing money a company must pay back to bondholders, typically at specified interest rates and dates.

Consolidated Financial Statements

Financial reports that combine the accounting and financial information of a parent company and its subsidiaries into one set of statements.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay off debt.

Convertible

A financial instrument, like a bond or preferred stock, that can be converted into another type of instrument, typically shares of the company's common stock.