To Close an Inflationary Gap Using Monetary Policy,the Bank of Canada

question 285

Multiple Choice

To close an inflationary gap using monetary policy,the Bank of Canada should _____ the money supply to _____ investment and consumer spending and shift the aggregate demand curve to the _____.

• A) increase;increase;left
• B) decrease;decrease;left
• C) increase;increase;right
• D) decrease;decrease;right

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Definitions:

Bruised Ego

Emotional discomfort or distress caused by an event that negatively affects one's self-esteem or pride.

Erogenous Zones

Specific areas of the body that experience heightened sensitivity and can generate a sexual response when stimulated.

Pleasure-Seeking Energies

The drive towards activities or experiences that provide a sense of satisfaction, enjoyment, or pleasure.

Oedipus Complex

A theory in psychoanalytic theory that describes a child's feelings of desire for the opposite-sex parent and jealousy and envy toward the same-sex parent.