In Response to High Rates of Unemployment and a Large

question 47

Multiple Choice

In response to high rates of unemployment and a large and growing debt as a share of the economy,in the latter half of the 1990s,Canada

• A)increased government spending and shifted the federal budget toward a deficit.
• B)reduced government spending and shifted the federal budget toward a surplus.
• C)cut taxes and increased government spending.
• D)held government spending constant as a share of the economy and increased taxes in order to balance the budget.

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Definitions:

Premium

The amount by which the price of a security, especially a bond or insurance policy, exceeds its principal amount or face value.

American-Style Option

A type of options contract that can be exercised at any time before expiration, offering more flexibility than European-style options.

European-Style Option

An option contract that can only be exercised on its expiration date, not before.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price (strike price) within a specific time period.