A Former Governor of the Bank of Canada Argued That

question 28

Multiple Choice

A former Governor of the Bank of Canada argued that high interest rates tend to accompany high inflation because inflation

• A)reduces banks' profits who then respond by lowering their lending rates.
• B)erodes the value of the dollar and therefore lenders need to be compensated through higher interest rates.
• C)causes the Canadian dollar to appreciate which again fuels inflation even more.
• D)lowers short term interest rates and acts as an incentive to borrow money.
• E)increases housing prices so younger Canadians are made worse off.

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Definitions:

Wireless Phone Company

A service provider that offers mobile telecommunication services, including voice and data communication, without requiring fixed lines.

Random Order

An arrangement or sequence of items where each item's position is determined by chance, ensuring no predetermined pattern.

Probability

The degree of likelihood or chance that a specific outcome will take place.

Men

Adult human males.