If the Bank of Canada Chooses to Expand M2 by Exactly

question 61

Multiple Choice

If the Bank of Canada chooses to expand M2 by exactly $1 million, it could do so by

• A)buying $1 million worth of government securities on the open market.
• B)increasing reserves at the commercial banks by $1 million.
• C)selling $1 million worth of government securities on the open market.
• D)decreasing reserves at the commercial banks by $1 million.
• E)none of the above - the Bank of Canada cannot precisely control the money supply.

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Definitions:

Hospital Setting

An environment within a healthcare facility where medical care, treatment, and services are provided to patients.

Doppler Device

A medical device that uses the Doppler effect to produce images or sounds of the movement of fluids within the body, commonly used for examining blood flow.

Palpate Pulses

The act of feeling the heartbeat at various points on the body to assess the heart rate and rhythm.

Left Lower Leg

The part of the leg that is below the knee on the left side, encompassing the calf and shin area.