If There Were a Large and Persistent Recessionary Gap,an Appropriate

question 94

Multiple Choice

If there were a large and persistent recessionary gap,an appropriate monetary policy could include

• A)increasing the bank rate.
• B)increasing the overnight lending rate.
• C)decreasing reserves available to the commercial banks.
• D)the Bank of Canada reducing its target for the overnight interest rate.
• E)the Bank of Canada selling government securities to the public.

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Definitions:

Efficiency

The ability to accomplish a task or produce a desired outcome with minimum waste of time, resources, or effort.

Available Resources

The total assets, financial, human, or material, that are currently accessible for use in achieving goals or completing projects.

Output

Output refers to the goods or services produced by a business, system, or process within a given period.

Role Conflict

A situation in which there are contradictory expectations associated with a single role or multiple roles being performed by an individual.