72,Assume that banks do not hold excess reserves. The banking system has $20 million in reserves and has a reserve requirement of 20 percent. The public holds $10 million in currency. Then the public decides to withdraw $5 million in currency from the banking system. If the Bank of Canada wants to keep the money supply stable by changing the reserve requirement, then what will the new reserve requirement be?

a.20 percentb.16 percentc.25 percentd.18.2 percent

71,Which group has the highest labour-force participation rate in Canada?

a.females, 25-44 yearsb.males, 15-24 yearsc.females, 15-24 yearsd.males, 25-44 years

70,What is included in GDP?

a.the sale of used goodsb.the sale of stocks and bondsc.the sale of ownership in a new companyd.the sale of services such as visits to a doctor

61,Who would be included in the labour force?

a.Homer, an unpaid stay-at-home parentb.Ken, who has become discouraged looking for a job and has quit looking for a whilec.Hank, who is waiting for his new job to startd.Thomas, a 20-year-old student who does not work and is not looking for work

62, What is the term used when GDP is modified to account for fluctuations in production that occur during the year?

a.seasonally adjustedb.manually adjustedc.deflationd.realization

63, What happens when the price level rises?

a.Interest rates rise, so firms increase investment.b.Interest rates fall, so firms decrease investment.c.Interest rates rise, so firms decrease investment.d.Interest rates fall, so firms increase investment

64, What do economists think about high and moderate inflation?

a.They agree that high inflation is costly, but they disagree about the costs of moderate inflation.b.They agree that moderate inflation is as costly as high inflation, but they disagree about how to measure those costs.c.They agree that neither high inflation nor moderate inflation is very costly.d.They agree that both high and moderate inflation are quite costly

65, What has been suggested as a cause of the Great Depression?

a.a decline in outputb.strong bank regulationsc.a decrease in pricesd.a decrease in the money supply

66, Which of the following measures the overall price level?

a.the price of some particular commodity or serviceb.the consumer price indexc.the nominal GDPd.the rate of inflation