If an Economy Is Operating at an Aggregate Output Level

question 24

Multiple Choice

If an economy is operating at an aggregate output level above its potential output level,the Bank of Canada may:

• A) conduct an open market sale.
• B) conduct an open market purchase.
• C) lower the overnight rate.
• D) decrease government spending.

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Definitions:

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person.

Losses Total

The complete sum of all financial losses incurred by an entity during a specified period.

Negligent

Failing to take proper care in doing something, leading to damage or injury to another.

Foreseeable Harm

Damage or injury that a reasonable person should have anticipated as a likely outcome of their actions.