Scenario 3.4. Imagine that Kristy deposits $10,000 of currency into her chequing account deposit at Bank A and that the desired reserve ratio is 20%. Refer to Scenario 3.4. As a result of Kristy's deposit, chequing account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of

Question 35 options:

$20,000.

$100,000

$50,000.

$8,000.

$10,000.

The labour force participation rate is defined as

Question 36 options:

the percentage of the working-age population in the labour force.

the percentage of the labour force that is unemployed

the percentage of the labour force that is employed

the percentage of the working-age population that is unemployed

Which of the following is an objective of fiscal policy?

Question 37 options:

high rates of economic growth

energy independence from Middle East oil

security for all Canadians

providing health care coverage to all Canadians

If full-employment GDP is equal to $1.9 trillion, what does the long-run aggregate supply curve look like?

Question 38 options:

It is a horizontal line at $1.9 trillion of real GDP

It is a vertical line at a level of real GDP beyond $1.9 trillion

It is a vertical line at $1.9 trillion of real GDP.

It is a vertical line at a level of real GDP below $1.9 trillion

If the tax multiplier is -1.5 and a $20 billion tax increase is implemented, what is the change in GDP, holding everything else constant? (Assume the price level stays constant.)

Question 39 options:

a $30 billion decrease in GDP

a $13.33 billion decrease in GDP

a $300 billion increase in GDP

a $30 billion increase in GDP

The purchase or building by a corporation of a facility in a foreign country is called

Question 40 options:

foreign capital investment.

foreign portfolio investment.

globally-directed investment.

foreign direct investment.