Who Determines the Amount of Money in the Economy

question 127

Multiple Choice

Who determines the amount of money in the economy?

• A) The Bank of Canada controls the money supply precisely.
• B) The amount of money in the economy does not depend on the behaviour of depositors.
• C) The amount of money in the economy depends in part on the behaviour of banks.
• D) The Minister of Finance determines the amount of money in the economy by law.

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Definitions:

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, security, and economic interests.

Fiscal Policies

Government policies regarding taxation and expenditure decisions designed to influence a country's economy, including methods to manage inflation, unemployment, and stimulate economic growth.

Eastern Europe

A region that encompasses many countries to the east of Germany and west of the Ural Mountains, known for its rich history and cultural diversity.