To Offset the Effect of Households and Firms Deciding to Hold

question 254

Multiple Choice

To offset the effect of households and firms deciding to hold more of their money in chequing account deposits and less in currency, the Bank of Canada could

• A)raise bank taxes.
• B)sell government securities.
• C)raise government spending.
• D)buy government securities.
• E)increase lending to banks.

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Definitions:

Sense of Wonder

A feeling of awe and curiosity about the world, often associated with the exploration or discovery of something novel or extraordinary.

Engrossing

Capturing one's full attention; fascinating or absorbing.

Flow

A psychological state of complete immersion and focused concentration in an activity, often resulting in a loss of the sense of time.

Measurably Happier

A state in which an individual's happiness or well-being can be quantitatively assessed or increased.