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:

Pseudocyesis

A condition in which a person believes they are pregnant and exhibits some pregnancy symptoms, but no actual pregnancy exists.

False Pregnancy

A condition in which a person believes they are pregnant and may even exhibit pregnancy symptoms, but is not actually pregnant.

Circum-

A prefix meaning around or about, often used in medical and geographical terms.

Around

Located or positioned on every side, or in a circular direction or position surrounding an object.