Which of the Following Does Not Occur as a Result

question 58

Multiple Choice

Which of the following does not occur as a result of the Bank of Canada lowering the overnight loans rate?

• A)The supply of loanable funds increases.
• B)The long-term real interest rate falls.
• C)Exports increase.
• D)The inflation rate decreases.
• E)Imports decrease.

---

Definitions:

First-Degree Price Discrimination

A pricing strategy where a seller charges the maximum price that each consumer is willing to pay, capturing the entire consumer surplus.

Monopolist

An entity or person that has exclusive control over the supply of a particular good or service in the market, potentially influencing prices and availability.

Greater Profits

Increased financial gains achieved by a business, indicating higher revenue over costs compared to a previous period or benchmark.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, impacting societal equality and opportunities.