If the Bank of Canada Keeps the Real Interest Rate

question 80

Multiple Choice

If the Bank of Canada keeps the real interest rate constant,the recovery of a weak housing market would cause the ________,and the output gap would ________.

• A) MP curve to shift up; become less negative
• B) MP curve to shift down; become more negative
• C) IS curve to shift to the left; become more negative
• D) IS curve to shift to the right; become less negative

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Definitions:

Vicariously Liable

Holding one person responsible for the actions of another, especially in legal contexts where employers are responsible for their employees.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working conditions.

Labour Relations Board

A governmental body responsible for overseeing and enforcing labor and employment laws, specifically relating to collective bargaining and union rights.

Collective Bargaining

The process of negotiation between employees, usually through their unions, and employers on terms of employment, such as wages and working conditions.