Using the Money Demand and Money Supply Model, an Open

question 251

Multiple Choice

Using the money demand and money supply model, an open market sale of government of Canada securities by the Bank of Canada would cause the equilibrium interest rate to

• A)increase.
• B)decrease.
• C)not change.
• D)increase, then decrease.

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Definitions:

Unions

Organizations formed by workers to collectively negotiate with employers regarding wages, working conditions, and other employment rights and benefits.

Merit Pay

A compensation strategy that rewards employees based on their performance, often used as an incentive for higher productivity and job satisfaction.

Public Sector

The part of the economy composed of both public services and public enterprises, managed and financed by the government.

Piece Rates

A pay system where employees are compensated based on the amount of work completed, such as the number of items produced or tasks finished.