One of the Results of the Restrictive Monetary Policy Adopted

question 36

Multiple Choice

One of the results of the restrictive monetary policy adopted by the Bank of Canada in the early 1980s was that

• A)inflation fell dramatically and real GDP remained at full employment levels.
• B)inflation remained over 10 percent, but the Bank of Canada avoided a major recession.
• C)inflation fell dramatically, but was accompanied by a major recession.
• D)inflation remained over 10 percent and there was a major recession.
• E)unemployment fell, but inflation accelerated due to higher interest rates.

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Definitions:

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those from other groups.

Outgroup Homogeneity

The psychological phenomenon whereby individuals perceive members of a group to which they do not belong as more similar to each other than members of their own group.

Memorable Cases

Instances or examples that stand out in memory due to their uniqueness, significance, or emotional impact.

Violent Crimes

Offenses that involve force or threat of force, including murder, rape, robbery, and assault.