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If the Economy Is at Potential Output and the Bank

question 217

Multiple Choice

If the economy is at potential output and the Bank of Canada decreases the money supply,in the short run the likely result will be a(n) _____ in investment and a(n) _____ in consumption.


Definitions:

Individual Transferable Quotas (ITQs)

A regulatory tool used in fisheries management allowing the capture of a certain amount of seafood, with the quotas being tradable among individuals or companies.

Promote Efficiency

The act of enhancing the performance and productivity of a system or process, reducing wastage of resources.

Thomas Malthus

Thomas Malthus was an English cleric and scholar, influential in the fields of political economy and demography, best known for his theory that population growth will always tend to outstrip the food supply.

Essay on the Principles of Population

A work by Thomas Malthus that discusses the potential negative effects of population growth on resources and living standards.

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