If There Were a Large and Persistent Recessionary Gap,an Appropriate

question 94

Multiple Choice

If there were a large and persistent recessionary gap,an appropriate monetary policy could include

• A)increasing the bank rate.
• B)increasing the overnight lending rate.
• C)decreasing reserves available to the commercial banks.
• D)the Bank of Canada reducing its target for the overnight interest rate.
• E)the Bank of Canada selling government securities to the public.

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Definitions:

Incentive Compensation Systems

Reward structures designed to motivate employees by tying a portion of their earnings to specific performance metrics.

Performance Targets

These are specific goals set for employees or departments to achieve within a certain timeframe to measure effectiveness.

Bonus Pay Plans

Financial incentives provided to employees based on performance.

Law Of Effect

A psychological principle suggesting that behaviors followed by positive outcomes are likely to be repeated, whereas those followed by negative outcomes are less likely to be repeated.