Suppose the Bank of Canada Fixes the Canada-U

question 148

Multiple Choice

Suppose the Bank of Canada fixes the Canada-U.S.exchange rate between the limits of Cdn$1.10 and Cdn$1.20 to the U.S dollar.If the free-market equilibrium exchange rate would otherwise be Cdn$1.25,then the

• A)Bank of Canada needs to engage in expansionary monetary policy to support the dollar.
• B)Government of Canada must reduce spending and increase taxes.
• C)Bank of Canada must sell U.S.dollars.
• D)Bank of Canada must buy U.S.dollars.
• E)Federal Reserve System in the Untied States is required to increase the number U.S.dollars circulating in Canada.

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Definitions:

Loci

Specific fixed positions on chromosomes where genes or genetic markers are located.

Chromosome

Chromosomes are long, thread-like structures made of DNA and proteins, found in the nucleus of most living cells, carrying genetic information in the form of genes.

Epistasis

Condition in which certain alleles of one locus alter the expression of alleles of a different locus.

Alleles

Different forms of a gene that arise by mutation and are found at the same place on a chromosome.