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