For purposes of monetary policy, the Bank of Canada has targeted the interest rate known as the

Question 52 options:

overnight interest rate

Canada bond rate

discount rate

prime rate

Using the quantity equation, if the velocity of money grows at 5 percent, the money supply grows at 10 percent, and real GDP grows at 4 percent, then the inflation rate will be

Question 53 options:

15 percent

6 percent

19 percent

11 percent

If the economy is producing at potential GDP,

Question 55 options:

inflation in the economy is at its natural rate

the AD curve must be positively sloped.

unemployment is at its natural rate.

the short-run aggregate supply curve must be vertical.

If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from

Question 51 options:

23.3 years to 21.4 years

28.0 years to 21.4 years

11.2 years to 10.8 years

23.3 years to 17.5 years

If the economy is at point A, an appropriate fiscal policy by the federal government would be to

Question 48 options:

sell government securities.

decrease transfer payments.

increase government expenditures.

decrease the required reserve ratio.