An increase in individual income taxes ________ disposable income, which ________ spending (consumption).

Question 31 options:

a)	increases; decreases

b)	decreases; increases

c)	decreases; decreases

d)	increases; increases

Question 32(1 point)

The interest rate can be thought of as which of the following?

Question 32 options:

a)	As a result of the level of saving.

b)	As a reflection of the supply of money.

c)	As a result of the level of investment.

d)	As the price of money.

Question 33(1 point)

In the figure below, a movement from pointAto pointBalong the demand curve would be caused by

Question 33 options:

a)	an decrease in taxes.

b)	a decrease in the price level.

c)	a decrease in real GDP.

d)	an increase in the interest rate.

Question 34(1 point)

Mortgage loans are an important activity for banks, and the US banks have been very conservative relative to their Canadian counterparts.

Question 34 options:

	a) True
	b) False

Question 35(1 point)

What is the bank rate?

Question 35 options:

a)	The rate of interest that a commercial bank charges its best customers for a loan.

b)	The rate of interest that the Bank of Canada charges a commercial bank for a loan.

c)	The rate of interest that a commercial bank pays its best customers for their savings.

d)	The rate of interest that the Bank of Canada pays commercial banks for their deposits.

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