Monetary policy refers to the actions the central bank takes to manage

Question 31 options:

a)	government spending and income tax rates to pursue its economic objectives.

b)	the money supply and interest rates to pursue its economic objectives.

c)	the money supply and income tax rates to pursue its economic objectives.

d)	income tax rates and interest rates to pursue its economic objectives.

Question 32(1 point)

What is the purpose of the Bank of Canada?

Question 32 options:

a)	It acts as a financial agent for the federal government.

b)	It supplies the economy with currency.

c)	All of these.

d)	It acts as auditor and inspector of the commercial banks.

Question 33(1 point)

What is net tax revenue in excess of government spending on goods and services called?

Question 33 options:

a)	A budget surplus.

b)	A budget deficit.

c)	Transfer payments.

d)	Gross tax revenue.

Question 34(1 point)

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

Question 34 options:

a)	an increase in the interest rate.

b)	a decrease in real GDP.

c)	an decrease in taxes.

d)	a decrease in the price level.

Question 35(1 point)

The action of individuals or private institutions buying a newly issued Canada Savings Bond or a treasury bill:

Question 35 options:

a)	is a result of a government budget surplus.

b)	is borrowing by the government to finance a budget deficit.

c)	is unrelated to both government budget surpluses and deficits.

d)	decrease the size of the government's debt.

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