What Would Constitute Contractionary Monetary Policy by the Bank of Canada

question 10

Multiple Choice

What would constitute contractionary monetary policy by the Bank of Canada?

• A)open market purchases of government securities and a cut in the bank rate
• B)an increase in tariffs on imported goods and a decrease in foreign aid
• C)an increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit
• D)open market sales of government securities and an increase in the bank rate

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Definitions:

Target Response

The desired behavior or outcome that is aimed for in a psychological experiment or behavioral intervention.

Likelihood

The probability or chance that a particular event will occur.

Operant Process

The method by which behaviors are modified through the consequences of those behaviors, emphasizing reinforcement and punishment.

Negative Reinforcement

A concept in behavioral psychology where the removal of an unpleasant stimulus in response to a desired behavior increases the likelihood of that behavior being repeated in the future.