Interest rates and money supply in canada
Problem: Explain how the Bank of Canada can influence interest rates and the money supply in Canada. Be specific about the tools that are available to the Bank for such purposes. Explain how these tools would be used for expansionary policy.
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Make the argument, pro's and con's, for returning to the gold standard. List the positive and negative effects of reversing the current policy. E.g., How might this affect international trade?
(1) Why was the AS/AD model developed, and what limitations of the S/D model did it overcome? (2) List a real world example that is not in the text that supports your response.
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a. What is the equilibrium price? What is the equilibrium quantity of supply and demand? b. If the government set the price to 3, will there be surplus supply or surplus demand? What is the quantity of surplus demand or surplus demand?
Explain how the Bank of Canada can influence interest rates and the money supply in Canada. Be specific about the tools that are available to the Bank for such purposes. Explain how these tools would be used for expansionary policy.
In a short-run situation in which quantity demanded equals quantity supplied in a competitive industry, with price greater than the average cost of the typical firm,
The government levies an excise tax of 5 cents per unit sold on the sellers in a competitive industry. Both supply and demand curves have some elasticity with respect to price. This tax means that the:
Problem: A shortage of OPEC oil raises oil prices because of: A) the law of elastic supply. B) the law of elastic demand. C) the downward-sloping demand curve. D) all of the above. E) none of the above.
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