It May Be Necessary to Cut the Deficit as Part

question 51

Multiple Choice

It may be necessary to cut the deficit as part of a credible anti-inflationary policy because the public knows that large deficits ________.

• A) are inflationary by themselves in the long run
• B) create inefficiencies
• C) put pressure on the Bank of Canada to expand the money supply to keep interest rates from rising
• D) put pressure on the Bank of Canada to contract the money supply to prevent employment from rising

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Definitions:

Conditioned Stimulus

A neutral stimulus that, once paired with an unconditioned stimulus, eventually triggers a conditioned response.

Television Ad

A span of television programming produced and paid for by an organization, which conveys a message, typically to market a product or service.

Cigarettes

Narrow cylinders of finely cut tobacco rolled in paper for smoking, known to contain harmful substances including nicotine.

Behaviour Modification

The use of empirically demonstrated techniques to improve behavior, often by altering environmental variables.