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

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Definitions:

Government Contractors

Businesses or individuals that enter into contracts with government entities to provide goods or services.

Actively Pursuing

Engaging with dedication and effort towards achieving a specific goal, often used in the context of job searching or career advancement.

Fourteenth Amendment

An amendment to the United States Constitution granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens "equal protection of the laws."

Racial Discrimination

Unfair treatment of individuals based on their race or ethnicity, leading to inequality and injustice in the workplace and beyond.