Multiple Choice
If the Bank of Canada chooses to expand M2 by exactly $1 million,it could do so by
A) buying $1 million worth of government securities on the open market.
B) selling $1 million worth of government securities on the open market.
C) increasing reserves at the commercial banks by $1 million.
D) decreasing reserves at the commercial banks by $1 million.
E) None of the above - the Bank of Canada cannot precisely control the money supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: In the early 1980s,when the Bank of
Q28: Suppose the Bank of Canada increases its
Q35: The overnight interest rate is crucial to
Q39: If we observe that the bank rate
Q40: Inflation targeting<br>A)is irrelevant to the stability of
Q42: In 1994,Gordon Thiessen was appointed as the
Q43: To remove an inflationary gap,the Bank of
Q47: Suppose the Bank of Canada's announced target
Q50: The economic variables that the Bank of
Q63: In the early 1980s,the Bank of Canada