During the Period of Economic Recovery Between 1983 and 1987

question 91

Multiple Choice

During the period of economic recovery between 1983 and 1987, the main challenge for the Bank of Canada was to

• A)stabilize the unemployment rate.
• B)increase the money supply so that only a mild form of inflation would reappear.
• C)decrease the money supply to dampen inflationary expectations.
• D)accommodate the recovery, and the associated growth in money demand, without increasing the money supply so much as to refuel inflation.
• E)stabilize the exchange rate between the U.S. and Canadian dollars.

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Definitions:

Sole Proprietorships

A business structure where a single individual owns and operates the business, assuming all liabilities and responsibilities.

Business Organization

A structured entity formed for the purpose of conducting commercial, industrial, or professional activities, with structures ranging from sole proprietorships to corporations.

Triple Bottom Line

A framework or theory that recommends companies commit to focus on social and environmental concerns just as they do on profits, encapsulating three Ps: profit, people, and planet.

Corporate Form

A legal structure for organizing a business as a separate legal entity, which can own property, enter into contracts, sue and be sued, distinct from its owners (shareholders).