Monetary Policy Refers to the Actions the

question 21

Multiple Choice

Monetary policy refers to the actions the

• A)Prime Minister and Parliament take to manage the money supply and interest rates to pursue their economic objectives.
• B)Bank of Canada takes to manage the money supply and interest rates to pursue its macroeconomic policy objectives.
• C)Prime Minister and Parliament take to manage government spending and taxes to pursue their economic objectives.
• D)Bank of Canada takes to manage government spending and taxes to pursue its economic objectives.
• E)Commercial bank decisions determining when and to whom to make loans.

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Definitions:

Nonrenewable Resource

A natural resource that cannot be replaced once it has been used or is not replenished in a short period of time, such as fossil fuels and minerals.

Removal

The process of moving or eliminating something from a certain place or context.

User Cost

The cost of using a good or service, considering both the expense of use and the opportunity cost of not using an alternative.

Extraction Cost

The expenses associated with removing natural resources from the earth, such as mining, drilling, or harvesting.