Multiple Choice
If policy makers wanted to use both monetary and fiscal policy to stimulate demand and reduce a high rate of unemployment,which of the following would be most appropriate?
A) a larger government surplus and a reduction in the bank rate
B) a government surplus and the sale of securities in the open market by the Bank of Canada
C) a larger government deficit and an increase in the bank rate
D) a larger budget deficit and the purchase of securities in the open market by the Bank of Canada
Correct Answer:
Verified
Correct Answer:
Verified
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