A Restrictive Monetary Policy in Canada Is Most Likely To

question 215

Multiple Choice

A restrictive monetary policy in Canada is most likely to:

• A)depreciate the international value of the dollar and increase Canadian net exports.
• B)depreciate the international value of the dollar and decrease Canadian net exports.
• C)appreciate the international value of the dollar and increase Canadian net exports.
• D)appreciate the international value of the dollar and decrease Canadian net exports.

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Definitions:

ATC

Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the quantity of output produced.

AVC

Average Variable Cost, which is the variable cost per unit of output, typically considered in the short run.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

MR

Marginal Revenue, which refers to the additional income generated from selling one more unit of a good or service.