If the Bank of Canada Chooses to Prevent Any Change

question 36

Multiple Choice

If the Bank of Canada chooses to prevent any change in the exchange rate when government spending increases, what is most likely to happen?

• A) crowding-out effects
• B) no crowding-out effects
• C) no increase in the demand for goods and services
• D) a decrease in aggregate demand

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Definitions:

Counterconditioning

A therapy technique whereby an undesirable behavior is replaced with a more desirable one by associating the undesirable stimulus with a positive one.

Behavior Modification

The use of empirical and experimental methods to change or modify human behavior through various techniques and interventions based on principles of learning.

Token Economy

A behavioral modification technique based on systematic reinforcement using tokens that can be exchanged for desired items or privileges.

Institutionalized Patients

Individuals who are living in an institution such as a hospital or prison, especially for long periods, due to mental illness, criminal behavior, or other reasons.