Suppose the Economy Is in a Recession

question 11

Multiple Choice

Suppose the economy is in a recession.Which of the following policies would is most likely to be supported by a person who favours an active approach to policy?  

• A) The economy should be left to cure itself without government intervention. 
• B) The Bank of Canada should sell Canadian government securities in its open-market operations. 
• C) The Bank of Canada should raise the overnight loans rate. 
• D) Government purchases should increase.

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Definitions:

Acceptable Name

A term used to indicate a name for a chemical compound that is approved by a recognized authority, such as the International Union of Pure and Applied Chemistry (IUPAC).

Starting Materials

The reactants used at the beginning of a synthetic chemical reaction.

Structures

The arrangement of atoms in a molecule.

Organic Product

A compound or material derived from living organisms or the result of organic reactions.