Which of the following would help eliminate a recessionary gap?

Question 11 options:

a)	An increase in exports

b)	An increase in government spending

c)	An increase in investment

d)	All of these

Question 12 (1 point)

What is fiscal policy?

Question 12 options:

a)	It is the government's approach to its own spending and taxation.

b)	It is the central bank's approach to interest rate policy.

c)	It is the total spending by all levels of government.

d)	It is the use of interest rate policy by the central bank to stabilize an economy.

Question 13 (1 point)

Which of the following is one of the important routine functions of the Bank of Canada?

Question 13 options:

a)	To supply the economy with currency.

b)	To advise commercial banks as to the most profitable ways of reinvesting profits.

c)	To help new commercial banks sell securities.

d)	To help commercial banks establish good financial arrangements with foreign banks.

Question 14 (1 point)

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

Question 14 options:

	a) True
	b) False

Question 15 (1 point)

How is the equilibrium rate of interest in the money market determined?

Question 15 options:

a)	By the intersection of the supply of money and the total demand for money.

b)	By the intersection of the supply of money and the transactions demand for money.

c)	By the intersection of aggregate expenditures and the total demand for money.

d)	By the intersection of the supply of money and the asset demand for money.

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