A Recessionary Gap Results from

question 3

Multiple Choice

A recessionary gap results from

• A) depreciation of the C$ leading to decreased imports.
• B) appreciation of the C$ leading to increased exports.
• C) appreciation of the C$ leading to decreased exports.
• D) depreciation of the C$ leading to increased imports.
• E) depreciation of the C$ leading to decreased exports.

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Definitions:

Indenture

A formal legal agreement, contract, or document, especially one relating to a loan or bond issue.

Debenture

An unsecured bond.

Sinking Fund

A savings fund accumulated over time for the purpose of paying off debt or replacing a large expense in the future.

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date.