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ECON-1012-B-Introduction to Macroeconomics

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Which of the following variables is a policy tool used by the Bank of Canada?
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If the Bank of Canada uses the corridor system and aims to lower the overnight rate, what does it do?
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How does the Bank of Canada conduct monetary policy?
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When the Bank of Canada raises the overnight rate, other short-term interest rates which of the following events occur?

Other short-term interest rates
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Who are the members of the Bank of Canada's Governing Council?
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The figure includes 4 graphs. On each graph, the horizontal axis represents real money in 2012 dollars and t The vertical axis represents the interest rate in percent per year. Graph a shows a vertical line labelled MS. A downward-sloping line that intersects MS is labelled MD0. A downward-sloping line that intersects MS and lies to the right of MD0 is labelled MD1. A rightward arrow lies between MD0 and MD1. Graph b shows a vertical line labelled MS. A downward-sloping line that intersects MS is labelled MD0. A downward-sloping line that intersects MS and lies to the left of MD0 is labelled MD1. A leftward arrow lies between MD0 and MD1. Graph c shows a downward-sloping line labelled MD. A vertical line that intersects MD is labelled MS0. A vertical line that lies to the right of MS0 is labelled MS1. A rightward arrow lies between MS0 and MS1. Graph d shows a downward-sloping line labelled MD. A vertical line that intersects MD is labelled MS0. A vertical line that lies to the left of MS0 is labelled MS1. A leftward arrow lies between MS0 and MS1.

Figure 14.3.1

Refer to Figure 14.3.1, which shows the money market. Everything else remaining the same, which graph best illustrates the effect of the Bank of Canada raising the overnight rate?
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When the Bank of Canada uses the corridor system, how does the Bank raise the overnight rate?
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When the Bank of Canada raises the overnight rate, what happens to the Canadian interest rate and the Canadian dollar?

The Canadian interest rate ________ and the Canadian dollar ________ on the foreign exchange market.
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Which of the following open market operations will the Bank of Canada undertake to fight recession?
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What are ample reserves and why did central banks create ample reserves?
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