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When the Bank of Canada uses open market operations to raise the overnight rate, the O A. demand for bonds increases. O B. supply of money increases. O C. supply of bonds increases. O D. supply of bonds decreases. O E. demand for bonds decreases.The fiscal policy to counter an inflationary gap is a(n) O A. expansionary fiscal policy. O B. positive aggregate demand shock. O C. positive aggregate supply shock. O D. negative aggregate demand shock. O E. negative aggregate supply shock.A hamburger costs C$4.50 in Fredericton, New Brunswick, and the exchange rate is 67 U.S. cents per Canadian dollar. Then the O A. Canadian dollar is expected to appreciate according to purchasing power parity. O B. hamburger will cost US$3.00 if purchasing power parity holds. O C. hamburger will cost US$4.50 if purchasing power parity holds. O D. Canadian dollar is expected to depreciate according to purchasing power parity. O E. hamburger will cost US$3.00 if rate of return parity holds.Consumption, C = 250 + 0.8 Yd Investment, I = 200 Government Spending, G = 100 Taxes, T = 0.2 Y Net Exports, NX = 50 - 0.14 Y Disposable Income, Yd = Y - T Real GDP = Y Calculate Y for this economy? O A. 1200 O B. 1100 O C. 1000 O D. 1300 O E. 900If you think the Canadian dollar will depreciate, you can expect to make money by O A. both buying U.S. dollars and selling Canadian dollars. O B. only buying Canadian dollars. O C. only selling U.S. dollars. O D. only selling Canadian dollars. O E. only buying U.S. dollars.Which statements are true? If the exchange rate changes from C$1 = US$1.10 to C$1 = US$0.90, then the: 1. Canadian dollar depreciated against the U.S. dollar. 2. Canadian dollar appreciated against the U.S. dollar. 3. U.S. dollar depreciated against the Canadian dollar. 4. U.S. dollar appreciated against the Canadian dollar. O A. 1 and 4 O B. 2 and 4 O C. 1 only O D. 2 and 3 O E. 1 and 3