In the Long Run, If the Bank of Canada Decreases

question 12

Multiple Choice

In the long run, if the Bank of Canada decreases the rate at which it increases the money supply, what will happen to inflation and unemployment?

• A) Inflation and unemployment will be higher.
• B) Inflation will be higher and unemployment will be lower.
• C) Inflation will be lower and unemployment will be higher.
• D) Inflation will be lower and unemployment will stay the same.

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Definitions:

John Bowlby

A British psychologist best known for his work in developing attachment theory, which emphasizes the importance of early emotional bonds formed between children and their caregivers.

Harry Harlow

An American psychologist best known for his research on maternal separation, dependency needs, and social isolation experiments on rhesus monkeys.

Protective Response

A bodily reaction aimed at defending or preserving an organism's integrity or health from harm or disease.

Attachment Behaviour

The emotional bond that forms between an infant and their caregiver, influencing the child's personal development.