To Remove an Inflationary Gap, the Bank of Canada Would

question 45

Multiple Choice

To remove an inflationary gap, the Bank of Canada would probably seek to

• A)increase its target for the overnight interest rate.
• B)increase its target for the money supply.
• C)buy government securities through open- market operations.
• D)decrease its target for the overnight interest rate.
• E)decrease the bank rate.

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Definitions:

Binding Arbitration Clause

A provision in a contract that requires disputes to be resolved by arbitration, with the decision being final and enforceable by law.

Arbitrator's Decision

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Employer

An individual or organization that hires and pays people to work for them.

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refers to the capability of a law, contract, or agreement to be applied or compelled to observance by legal processes.