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

Question 26 options:

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

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

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

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

Question 27(1 point)

Contractionary monetary policy results in which one of the following?

Question 27 options:

a)	Higher interest rates.

b)	Lower interest rates.

c)	Higher aggregate expenditures.

d)	Higher real GDP.

Question 28(1 point)

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

Question 28 options:

a)	Keeping interest rates steady.

b)	Controlling inflation.

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

d)	keeping the unemployment rate below 4%.

Question 29(1 point)

Chartered banks are the largest and most important financial institutions in Canada.

Question 29 options:

	a) True
	b) False

Question 30(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 30 options:

a)

4%

b)

5%

c)

8%

d)

7%

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