Question 36 (1 point)

Contractionary monetary policy results in which one of the following?

Question 36 options:

a)	Higher interest rates.

b)	Higher real GDP.

c)	Lower interest rates.

d)	Higher aggregate expenditures.

Question 37 (1 point)

What happens if the Bank of Canada decreases the money supply?

Question 37 options:

a)	The bank rate will decrease because of a shortage of money.

b)	The bank rate will decrease because of a surplus of money.

c)	The bank rate will increase because of a shortage of money.

d)	The bank rate will increase because of a surplus of money.

Question 38 (1 point)

If the Bank of Canada wants to increase the money supply, it can sell government securities.

Question 38 options:

	a) True
	b) False

Question 39 (1 point)

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

Question 39 options:

a)	As a reflection of the supply of money.

b)	As a result of the level of saving.

c)	As a result of the level of investment.

d)	As the price of money.

Question 40 (1 point)

Which of the following are goals of monetary policy?

Question 40 options:

a)	price stability, economic growth, and high employment

b)	price stability, economic growth, and maximizing the value of the dollar relative to other currencies

c)	price stability, maximizing the value of the dollar relative to other currencies, and high employment

d)	maximizing the value of the dollar relative to other currencies, economic growth, and high employment

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