In the Simple Deposit Expansion Model, a Decline in Chequable

question 30

Multiple Choice

In the simple deposit expansion model, a decline in chequable deposits of $1000 when the desired reserve ratio is equal to 20 percent implies that the Bank of Canada ________.

• A) sold $200 in government bonds
• B) sold $500 in government bonds
• C) purchased $200 in government bonds
• D) purchased $500 in government bonds

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Definitions:

Energy Transfer

The movement of energy from one part of an ecosystem to another, typically through the process of eating and being eaten.

Carnivores

Organisms that primarily consume meat for nutrition, typically predators or scavengers, equipped with adaptations tailored for a diet of animal flesh.

Consumers

Organisms that obtain their energy by eating other organisms or organic matter instead of producing their own food, as in the case of plants.

Digestion

The breakdown of food into smaller components that can be absorbed and utilized by the body.