the economics of money, banking, and financial markets

846 $

© 2014 Pearson Canada Inc.$

46. 
    

    The New Economic Policy implemented by the Bolivian government to reduce inflation,
    resulted in a output loss of ____ percent of GDP.
    A) 1 percent
    B) 5 percent
    C) 10 percent
    D) nearly 18 percent
    Answer: B
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


47. 
    

    Prior to 1980, Canada's inflation rate ____.
    A) was growing at a slow and stable rate
    B) was never considered to be difficult to control
    C) reached double digits
    D) was tied to the U.S. inflation rate
    Answer: A
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


48. 
    

    To bring credibility to the Bank of Canada, Gerald Bouey, the governor created ____.
    A) double digit inflation
    B) two severe recessions in the 1980s
    C) a reorganization with the Bank of Canada
    D) a new measure of monetary aggregates
    Answer: A
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


49. 
    

    The 1981-1982 recession yielded an unemployment rate of ____.
    A) just less than 10 percent
    B) 10 percent
    C) just over 10 percent
    D) 20 percent
    Answer: A
    Diff: 2 Type: MC Page Ref: 632
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates