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Question 21(1 point)

Refer to the information above to answer this question. If the supply of money is $130, what is the value of the equilibrium interest rate?

Question 21 options:

a)

8%

b)

4%

c)

5%

d)

7%

Question 22(1 point)

What is the relationship between the economic policies of the Bank of Canada and those of the federal government?

Question 22 options:

a)	They usually have similar goals concerning the direction to move the economy.

b)	They are usually in conflict.

c)	They are both controlled by the nation.

d)	They are always unrelated.

Question 23(1 point)

Since the early 1990s the Bank of Canada has made its primary target that of:

Question 23 options:

a)	Keeping interest rates steady.

b)	Ensuring the stability of the Canadian dollar on international markets.

c)	keeping the unemployment rate below 4%.

d)	Controlling inflation.

Question 24(1 point)

Suppose that the government's total tax receipts are $130, government spending on goods and services is $100 and transfer payments (public expenditures) are $40. What is the government's budget surplus or deficit?

Question 24 options:

a)	A surplus of $10.

b)	A deficit of $30.

c)	A deficit of $10.

d)	A surplus of $30.

Question 25(1 point)

An interest rate above equilibrium will lead to a surplus of money.

Question 25 options:

	a) True
	b) False

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