The Front-Page Headline of Your Local Newspaper States That the Bank

question 106

Multiple Choice

The front-page headline of your local newspaper states that the Bank of Canada is becoming increasingly worried about the rate of inflation and wants to slow the economy.Which of the following policies is the Bank of Canada most likely to pursue?

• A)Increase taxes.
• B)Devalue the dollar on international currency exchanges.
• C)Decrease interest rates.
• D)Restrict the money supply and drive up interest rates.

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Definitions:

Indirect Channel

A path that goods or services take from the producer to the customer through intermediaries, such as wholesalers, distributors, or retailers.

Automobile Manufacturers

Companies that design, produce, market, and sell motor vehicles.

Consumer

An individual or group who purchases goods and services for personal use.

Industrial Distributors

Companies that specialize in distributing goods, typically in large quantities, from manufacturers to various end users or retailers.