At the End of the 1970s,the Inflation Rate in Canada

question 109

Multiple Choice

At the end of the 1970s,the inflation rate in Canada had exceeded 10%.This high inflation was due mainly to

• A)external pressures on the Canadian dollar.
• B)steadily decreasing factor prices.
• C)steadily decreasing factor prices and a contractionary monetary policy.
• D)a substantial negative supply shock that was partly validated by monetary policy.
• E)the extremely high wage increases being won by strong labour unions.

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Definitions:

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation after deducting its liabilities, indicating the ownership interest of the shareholders.

Trading Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and derivatives, actively managed and traded to achieve short-term financial gains.

Fair Value Adjustment

A financial process that alters the reported value of an asset or liability to reflect its current market value.

Common Stock C

A classification of common stock that may have specific rights, privileges, or restrictions compared to other classes.