Suppose Canadian Real GDP Is Currently Equal to Potential GDP

question 57

Multiple Choice

Suppose Canadian real GDP is currently equal to potential GDP. Then, because of events elsewhere in the world, European investors decide to hold fewer Canadian financial assets, which leads to a sustained depreciation of the Canadian dollar . If the Bank of Canada is committed to its inflation target then it should

• A)implement an expansionary monetary policy by decreasing its target for the overnight interest rate.
• B)implement an expansionary monetary policy by increasing its target for the overnight interest rate.
• C)not intervene in the economy at all since this shock will not have any real effects in the short run.
• D)implement a contractionary monetary policy by decreasing its target for the overnight interest rate.
• E)implement a contractionary monetary policy by increasing its target for the overnight interest rate.

Analyze and select appropriate assessments for clients based on their unique situations and needs.

Recognize the significance of assessing client needs, values, and interests in career counseling.

Identify the components and scales of established career assessment tools.

Know the initial steps and considerations in conducting a career assessment.

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Definitions:

One-Way Flow

A system or process in which resources or materials move in a single direction without recirculation or return to the starting point.

Limiting Factor

An environmental condition that restricts the growth, abundance, or distribution of an organism or a population within an ecosystem.

Terrestrial Ecosystems

are ecosystems found on land, characterized by diverse biotic communities interacting with the abiotic environment.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground.