If the Bank of Canada Wants to Eliminate an Inflationary

question 37

Multiple Choice

If the Bank of Canada wants to eliminate an inflationary gap, which of the following would be an appropriate policy?

• A)Raise the overnight loans rate.
• B)Lower the overnight loans rate.
• C)Buy government securities.
• D)Decease the government budget deficit.
• E)Lower the exchange rate.

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Definitions:

New Freedom

A collection of speeches Woodrow Wilson made during his presidential campaign of 1912, promising significant reforms for greater economic opportunity for all, while ensuring the tradition of limited government.

Woodrow Wilson

The 28th President of the United States (1913–1921), known for leading the country during World War I and advocating for the League of Nations.

Domestic Accomplishments

Achievements or positive outcomes that have been realized within a country, often in reference to government policies or initiatives in areas such as healthcare, education, or infrastructure.

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies and conservation efforts.