If the Current Unemployment Rate Is 5%, Under Which of the Following

question 133

Multiple Choice

If the current unemployment rate is 5%, under which of the following circumstances would you expect the Bank of Canada to use expansionary monetary policy?

• A)if the natural rate of unemployment is below 5%
• B)if the natural rate of unemployment is above 5%
• C)if the inflation rate is above 5%
• D)if the inflation rate is below 5%
• E)if the inflation rate is exactly 5%

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Definitions:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.