In 2004, the Bank of Canada Reduced the Overnight Rate

question 141

Multiple Choice

In 2004, the Bank of Canada reduced the overnight rate to as low as:

• A)4 percent, in an effort to slow down the economy.
• B)2 percent, in an effort to slow down the growth of the economy.
• C)2 percent, in an effort to stimulate the economy.
• D)3 percent, in an effort to stimulate the economy.

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Definitions:

Behavior

The responses or behaviors of an individual, whether human or animal, triggered by outside or inside factors.

Punishment

The imposition of a penalty or unpleasant consequence in response to an undesirable behavior, aimed at reducing or eliminating that behavior.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response.

Desirable Behaviors

Actions or conduct considered appealing or appropriate by a group, culture, or society, often encouraged or rewarded.