Question
1-The Bank of Canada has been purchasing several billions of dollars of government of Canada bonds each week for several months now. a.Suggest a fiscal
1-The Bank of Canada has been purchasing several billions of dollars of government of Canada bonds each week for several months now.
a.Suggest a fiscal policy tool which the Government of Canada could use to aid in Canada's economy recovery from Covid-19.?
b.What would be the effects on the Canadian economy is this tool is used?
c.Discuss any possible risks from the use of this tool.?
2-Let's assume there is an excess of supply of worldwide lithium, which is a component of batteries.
Determine the effects on:
a.Demand and Supply of Canadian-made cars with gas-driven engines.?
b.Demand and Supply of electric-powered cars in Canada.?
c.Demand and Supply of Canadian-made bicycles.?
d.Demand and Supply for public transit in Canada.?
e.The overall output of the Canadian economy.?
3-The U.S. government has recently passed a large stimulus package which many economists believe will supercharge the U.S. economy for 2021.
a.How will this affect the Canadian economy regarding Unemployment?
b.How will this affect the Canadian economy regarding Supply?
c.How will this affect the Canadian economy regarding GDP?
d.Should Canada pass a large stimulus package for the Canadian economy, as well?
If yes, what economic tool should be used? If no, why?
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