Use the Information Below to Answer the Following Questions

question 61

Multiple Choice

Use the information below to answer the following questions.
Fact 30.3.1 Growth Forecast Through 2016
With low interest rates, business investment and trade are expected to bring growth through 2016.
Source: TD Economics, September 25, 2014
-Consider Fact 30.3.1. To stimulate business investment further, the Bank of Canada can

• A)decrease the government budget deficit.
• B)increase the government budget surplus.
• C)commit to keeping the inflation rate low and steady.
• D)lower the Canadian dollar exchange rate.
• E)lower the natural unemployment rate.

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Definitions:

Normal Good

A type of good for which demand increases when consumer income increases, and decreases when consumer income decreases, assuming all other factors remain constant.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Corn Seed

The seed of the corn plant, used for planting to produce corn crops; an essential agricultural product.