You Have Just Read That the Bank of Canada Has

question 84

Multiple Choice

You have just read that the Bank of Canada has increased the money supply to avoid a recession.For a given price level,you would expect the LM curve to

• A)shift up as the real money supply falls.
• B)shift up as the real money supply rises.
• C)shift down as the real money supply falls.
• D)shift down as the real money supply rises.

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Definitions:

C Corporations

A type of corporation subject to corporate income tax, with profits distributed to shareholders as dividends.

Report

A written or spoken account of something that has been observed, heard, done, or investigated.

Form 1120

The U.S. Corporate Income Tax Return, a form used by corporations to report their income, gains, losses, deductions, and credits to the IRS.

C Corporations

A type of business entity that is taxed separately from its owners, providing limited liability to its shareholders.