If the Economy Is Experiencing an Undesired Inflationary Gap,the Bank

question 45

Multiple Choice

If the economy is experiencing an undesired inflationary gap,the Bank of Canada could

• A)increase the supply of money,lowering interest rates,which would shift the AD curve inward.
• B)decrease the demand for money,lowering interest rates,which would shift the AD curve outward.
• C)decrease the supply of money,raising interest rates,which would shift the AD curve inward.
• D)increase the supply of money,lowering interest rates,which would shift the AD curve outward.
• E)shift the investment demand curve to the right by lowering interest rates,which would shift the AD curve outward.

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Definitions:

Dispositional Attribution

The tendency to attribute someone's behavior to inherent personality traits rather than to external situational factors.

Objective Attribution

Involves attributing someone's behavior to objective, situational factors outside of personal control, rather than to internal characteristics or motives.

Situational Attribution

The process of attributing a person's behavior to external factors, circumstances, or the environment rather than to internal personality traits.

Momma's Boy

A term often used to describe a man who has a very close and dependent relationship with his mother, beyond what is considered usual.