32,if the Bank of Canada maintains a fixed exchange rate, which effect will an expansionary fiscal policy
Question:
32,if the Bank of Canada maintains a fixed exchange rate, which effect will an expansionary fiscal policy have?
a.It will have no permanent effect on either the position of the AD curve or the interest rate.b.It will cause a large and permanent rightward shift in the AD curve.c.It will cause a large and permanent leftward shift in the AD curve.d.It will have no permanent effect on the position of the AD curve, but it will cause interest rates to rise
4,According to international studies, larger GDP per person is associated with which other measures of well-being?
a.similar life expectancy and a higher quality of the environmentb.longer life expectancy and a higher percentage of the population that is literatec.longer life expectancy and a higher rate of population growthd.similar life expectancy and a higher percentage of the population that is literate
6, Healthy Grain Farms, a Canadian manufacturer of dried peas and lentils, sells cases of its product to stores overseas. Which statement best identifies the effects of these transactions?
a.They decrease Canadian exports but increase Canadian net exports.b.They decrease both Canadian exports and Canadian net exports.c.They increase both Canadian exports and Canadian net exports.d.They increase Canadian exports but decrease Canadian net exports.
10, What is most likely to increase exports in the country of Makena?
a.introduce a consumption taxb.a reduction in political instabilityc.an import quotad. d,a reduction in the size of the government's budget surplus
12What is most likely to happen under a fractional reserve banking system?
a.Banks generally lend out a majority of the funds deposited.b.Banks cause the money supply to fall by lending out reserves.c.Banks only accept savings deposits.d.Banks hold more reserves than deposits.
16,Suppose the Canadian government allowed taxpayers to earn their first $5000 interest free of income tax. How would this shift the supply of, or demand for, loanable funds?
a.The demand for loanable funds would shift to the right.b.The supply of loanable funds would shift to the right.c.The demand for loanable funds would shift to the left.d.The supply of loanable funds would shift to the left.
17,If Canada made cannabis illegal, then, other things the same, what would happen to GDP?
a.It would increase.b.It would decrease.c.It does not change because cannabis is never included in GDP.d.It would not change because both legal and illegal production are included in GDP.
18,Which statement is consistent with the Keynesian theory?
a.Irrational waves of optimism would cause a reduction in aggregate demand and decrease unemployment.b.Changes in consumer confidence are irrelevant for the economy.c.Changes in business and consumer expectations generally stabilize the economy.d.Short-run economic fluctuations are caused by unstable aggregate demand; therefore, policy instruments should be used to stabilize the economy.
19,GDP is used as the basic measure of a society's economic well-being. What is a better measure of the economic well-being of individuals in society?
a.the consumption component of GDPb.the level of business investmentc.GDP per persond.government expenditures per person