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

question 22

Multiple Choice

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

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

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Definitions:

Termination Clause

A provision in a contract that specifies the conditions under which the contract may be ended before the performance is completed.

Notice of Termination

A documented notice informing an individual or entity of the end of a contract or employment.

Fee Simple

An estate in land that represents the greatest interest in land that a person may possess, and that may be conveyed or passed by will to another, or that on an intestacy would devolve to the person’s heirs.

Conveyance

The act of transferring the title, rights, or interest in a property from one party to another.