Suppose Canada Is Experiencing a 12 Percent Rate of Unemployment

question 111

Multiple Choice

Suppose Canada is experiencing a 12 percent rate of unemployment with stable prices and a trade deficit.All else equal, the use of appropriate monetary policy to reduce unemployment would:

• A)cause the dollar to appreciate in value.
• B)have no impact upon our trade deficit.
• C)decrease our trade deficit.
• D)increase our trade deficit.

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Definitions:

Pulmonary Trunk

The major blood vessel that carries blood from the heart to the lungs for oxygenation.

Coronary Artery

A type of blood vessel that supplies blood to the heart muscle itself.

Pulmonary Vein

A vein that carries oxygenated blood from the lungs back to the left atrium of the heart.

Right Ventricle

The chamber within the heart that receives deoxygenated blood from the right atrium and pumps it into the pulmonary artery.