Part A: Question #1:  If Canada was in a Recession then the Bank of Canada would _________________(Buy/Sell) securities from Chartered Banks. 

Part A: Question #2: If Canada was in a Recession then the Bank of Canada would ________________(Increase/Decrease) the Chartered Banks Reserves (a.k.a CB Deposits at the Bank of Canada)?

Part A: Question #3: If Canada was in a Recession then the Chartered Banks would be expected to ____________ (Create Loans/Call in Loans) in the amount of the Chartered Bank's excess reserves. 

Part A: Question #4: In a time of a recession the Bank of Canada would succeed in increasing the money supply shifting it right and causing an _______________________(Excess Demand for/Excess Supply of) Money.

Part A: Question #5: In a time of a recession the Bank of Canada would succeed in increasing the money supply shifting it right and causing an _______________________(Excess Demand for/Excess Supply of) Bonds.

Part A: Question #6: In a time of a recession the Bank of Canada would succeed in increasing the money supply shifting it right, households will _____________________ (Buy/Sell) Bonds to bring the Money Market back to equilibrium.

Part A: Question #7: In a time of a recession the Bank of Canada would succeed in increasing the money supply shifting it right, the price of bonds will ________________ (Increase/Decrease). 

Part A: Question #8: In a time of a recession the Bank of Canada would succeed in increasing the money supply shifting it right, and finally the nominal interest rate will ___________________ (Increase/Decrease).

Part B: Question #1: If Canada was in an Inflationary period, then the Chartered Banks would be expected to ____________ (Create Loans/Call in Loans) in the amount of the Chartered Bank's excess reserves. 

Part B: Question #2: In a time of an inflationary period the Bank of Canada would succeed in decreasing the money supply shifting it left, households will _____________________ (Buy/Sell) Bonds to bring the Money Market back to equilibrium