Question 1

Bank of Canada purchased $500 billions worth of Government bonds.

This purchase of government bonds by the Bank of Canada will____money supply in Canada.

decrease

not change

increase

What monetary policy is the Bank of Canada implementing?

contractionary

expansionary

deflationary

recessionary

Why Canadian dollar depreciated when people expect lower interest rate?

foreign demand for Canadian financial instruments increases

foreign demand for Canadian financial instruments decreases

foreign demand for Canadian crude oil increases

foreign demand for Canadian crude oil decreases

This will cause net exports to

decrease

not change

increase

The net exports effect:

reduces the effectiveness of both fiscal and monetary policy.

complements the effectiveness of both fiscal and monetary policy.

complements the effectiveness of fiscal policy but reduces effectiveness of monetary policy.

complements the effectiveness of monetary policy but reduces effectiveness of fiscal policy.

Question 2

Statistics Canada Table 282-0087

Canada June 2020 (000s)

Total Population 38,010.1

Working Age Population 31,114.3

Labour Force 19,880.2

Employed 17,427.4

How many Canadians are not of working age?

2,585.8

14,909.8

3,647.4

6,895.8