Which of the following statements best describes the Bank of Canada? It is:
A.a publicly owned and publicly controlled central bank, whose basic goal is to provide income for the Government of Canada
B. a privately owned and publicly controlled central bank, whose basic goal is to earn profits for its owners
C. a publicly owned and publicly controlled central bank, whose basic goal is to control the money supply and interest rates and maintain price stability and it is an independent agency of government.
D. a privately owned and publicly controlled central bank, whose basic function is to minimize the risks in chartered banking in order to make it a reasonably profitable industry
E. a privately owned and privately controlled bank, whose basic goal is to earn profits for its owners
Ans: C. a publicly owned and publicly controlled central bank, whose basic goal is to control the money supply and interest rates and maintain price stability and it is an independent agency of government.
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If the labor supply curve is upward-sloping, an adverse supply shock causes ________ in employment and ________ in the real wage
A) no change, a decrease B) a decrease, a decrease C) a decrease, no change D) a decrease, an increase E) an increase, an increase
One reason the U.S. government might subsidize research of an alternative to crude-oil based gasoline is that
A) more substitutes will reduce the price of crude-oil based gasoline. B) more substitutes will increase the elasticity of crude-oil based gasoline. C) more substitutes will reduce the impact of supply shocks on the price of crude-oil based gasoline. D) Any or all of the above.
Keynesians would recommend
A. Lower government expenditures when there is a shortfall in aggregate demand. B. Lower taxes when there is excess aggregate demand. C. Higher taxes when there is excess aggregate demand. D. Reliance on the market rather than the government for adjustment when an undesirable level of aggregate demand occurs.
Tariffs and quotas are one-size-fits-all measures that work as tools to internalize external effects.
Answer the following statement true (T) or false (F)