If We Observe That the Bank Rate Has Increased,we Can

question 39

Multiple Choice

If we observe that the bank rate has increased,we can conclude that the

• A)Bank of Canada has implemented an expansionary monetary policy.
• B)Bank of Canada has implemented a contractionary monetary policy.
• C)Bank of Canada has abandoned its inflation target.
• D)Government of Canada has reduced the money supply.
• E)Bank of Canada has adjusted the rate it pays on Treasury bills.

---

Definitions:

Construct Validity

The extent to which a test measures what it claims, or purports, to be measuring.

Content Validity

The extent to which a test measures all aspects of the concept or construct it is intended to assess.

Internal Consistency Validity

A measure of whether items on a test are all assessing the same construct.

Interrater

An assessment of the degree to which different raters or observers give consistent estimates or judgments of the same phenomenon.