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.

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Definitions:

Linear Relationship

The relationship between two variables in which the slope is constant and therefore is depicted on a graph by a curve that is a straight line.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a particular price over a specified period.

Quantity Demanded

The overall volume of a good or service that buyers are eager and capable of acquiring at a certain price within a specific period.

Pie Chart

A circular graph that shows how some total is divided among its components, usually expressed in percentages.