If Policy Makers Wanted to Use Both Monetary and Fiscal

question 55

Multiple Choice

If policy makers wanted to use both monetary and fiscal policy to stimulate demand and reduce a high rate of unemployment,which of the following would be most appropriate?

• A)a larger government surplus and a reduction in the bank rate
• B)a government surplus and the sale of securities in the open market by the Bank of Canada
• C)a larger government deficit and an increase in the bank rate
• D)a larger budget deficit and the purchase of securities in the open market by the Bank of Canada

---

Definitions:

Power Consumption

This refers to the amount of electrical energy used by devices over time, typically measured in kilowatt-hours (kWh).

Test Statistic

is a calculated value from sample data used to determine whether to reject the null hypothesis in hypothesis testing.

Power Consumption

The amount of energy used by a device or system over a certain period.

Standard Deviation

An indicator of the extent of variability or spread among a collection of numbers, showing the degree to which these numbers differ from their average.