If the Bank of Canada Were to Shift Its Policy

question 95

Multiple Choice

If the Bank of Canada were to shift its policy reaction function rightward (i.e. ,an easing of monetary policy) ,the

• A) IA line would shift upward,causing an increase in the inflation rate.
• B) LRAS line would shift upward,causing an increase in the inflation rate.
• C) IA line would shift downward,causing a decrease in the inflation rate.
• D) ADI curve would shift to the left.
• E) ADI curve would shift to the right.

---

Definitions:

XML

Extensible Markup Language, a flexible language that facilitates the sharing of structured data across different information systems.

Forms

Predefined documents with blank fields that users can fill out, often used for applications, requests, or data entry.

Microsoft Visio 2007

A diagramming and vector graphics application released by Microsoft in 2007.

Project Management

The discipline of planning, organizing, motivating, and controlling resources to achieve specific goals.