798 "
© 2014 Pearson Canada Inc."
Which of the following is most likely to lead to inflationary monetary policy?
A) Declining oil prices
B) Resolution of conflict in the Middle East
C) The enactment of a free-trade agreement with Mexico
D) Rising unemployment
Answer: D
Diff: 2 Type: MC Page Ref: 614 - 615
Skill: Recall
Objective List: 25.3 Describe whether monetary policy should be activist or passive
Which of the following is most likely to lead to inflationary monetary policy?
A) Declining oil prices
B) Resolution of conflict in the Middle East
C) The enactment of a free-trade agreement with Mexico
D) Rising government budget deficits
Answer: D
Diff: 2 Type: MC Page Ref: 613 - 615
Skill: Recall
Objective List: 25.3 Describe whether monetary policy should be activist or passive
Because policies in Canada were too expansionary from 1965 through 1973, Canada suffered
____.
A) demand-pull inflation
B) cost-push inflation, as workers sought higher wages in order to keep up with inflation
C) both demand-pull and cost-push inflation
D) neither demand-pull nor cost-push inflation
Answer: A
Diff: 2 Type: MC Page Ref: 614 - 615
Skill: Applied
Objective List: 25.3 Describe whether monetary policy should be activist or passive