If the Bank of Canada Does Not Take into Account

question 278

Multiple Choice

If the Bank of Canada does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy.

• A)it is likely to decrease GDP too much and cause a recession
• B)it is likely to decrease GDP too little and inflation will persist
• C)it is likely to increase GDP too much and inflation will persist
• D)it is likely to increase GDP too little and cause a recession
• E)it is likely to decrease GDP too little and cause deflation

---

Definitions:

Proteinuria

An excess of protein in the urine.

Glycosuria

The presence of significant levels of glucose in the urine.

Clean-Catch Midstream

A urine collection method aiming to minimize contamination, involving the capture of urine 'midstream' after an initial flow has been discarded.

Urine Specimen

A sample of urine collected for medical testing to diagnose or monitor various conditions or diseases.