Which One of the Following Would Be the Most Appropriate

question 78

Multiple Choice

Which one of the following would be the most appropriate stabilization policy if the economy is operating beyond its long-run potential capacity?

• A)an increase in government purchases, holding taxes constant
• B)a purchase of bonds by the Bank of Canada
• C)an increase in the bank rate
• D)a reduction in taxes, holding government purchases constant

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Definitions:

Inoculate

A medical process that introduces a vaccine into the body to stimulate an immune response against a specific disease.

States Of Consciousness

Various levels of awareness of one’s thoughts, feelings, and perceptions, ranging from alertness to sleep.

Daydreaming

Daydreaming involves a stream of thoughts that diverge from immediate tasks or surroundings, leading to a state of thoughful abstraction or fantasizing about alternate scenarios or desired outcomes.

Selective Attention

The cognitive process of focusing on a specific aspect of information while disregarding other perceivable information.