An Increase in Canadian Interest Rates (Caused by a Monetary

question 128

Multiple Choice

An increase in Canadian interest rates (caused by a monetary contraction) should

• A)always induce an offsetting action by the Bank of Canada.
• B)increase the external value of the Canadian dollar.
• C)stimulate Canadian exports.
• D)lead to a surplus in Canada's current account.
• E)decrease the external value of the Canadian dollar.

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Definitions:

Zeitgeber

An external or environmental cue, such as light or temperature, that helps regulate the biological rhythms of an organism.

Potent

Having a strong effect or powerful influence.

Light

Electromagnetic radiation within a certain portion of the electromagnetic spectrum, which can be perceived by the human eye.

Zeitgeber

External or environmental cue that synchronizes an organism's internal body clock to the 24-hour day and night cycle, such as light.