Which of the Following Characterizes the Bank of Canada's Ability

question 205

Multiple Choice

Which of the following characterizes the Bank of Canada's ability to prevent recessions?

• A)The Bank of Canada is able to "fine tune" the economy and entirely eliminate recessions.
• B)The Bank of Canada is incapable of changing aggregate demand through its monetary policy tools.
• C)The Bank of Canada is able to keep a recession shorter and milder than it would otherwise be.
• D)The Bank of Canada is able to eliminate the business cycle and achieve absolute price stability.
• E)The Bank of Canada is able to eliminate all but the most severe recessions.

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Definitions:

Business Serving

Activities performed by a business aimed at assisting and fulfilling the needs of its customers.

Kansas Exodus

The mass migration of African Americans from the southern United States to Kansas following the Reconstruction era, seeking political and social freedom.

Underground Railroad

Operating in the decades before the Civil War, a clandestine system of routes and safehouses through which slaves were led to freedom in the North.