Suppose Canada Is Experiencing a 12 Percent Rate of Unemployment

question 111

Multiple Choice

Suppose Canada is experiencing a 12 percent rate of unemployment with stable prices and a trade deficit.All else equal, the use of appropriate monetary policy to reduce unemployment would:

• A)cause the dollar to appreciate in value.
• B)have no impact upon our trade deficit.
• C)decrease our trade deficit.
• D)increase our trade deficit.