the economics of money, banking, and financial markets

843 $

© 2014 Pearson Canada Inc.$

34. 
    

    The oil shock in 2007 ____.
    A) had little impact on the inflation rate in Canada
    B) led to a sharp increase in the inflation rate
    C) did not impact Canadian output
    D) was beneficial to the Canadian economy because Canada is a net exporter of oil
    Answer: A
    Diff: 2 Type: MC Page Ref: 629
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


35. 
    

    The reason Canada fared differently between the first two oil shocks and the third is because
    ____.
    A) a nominal anchor was in place during the third oil shock in 2007
    B) by 2007 Canada became a net exporter of oil, so Canadians benefitted from higher oil prices
    C) in 2007, the global financial crisis overshadowed any oil price shocks
    D) none of the above
    Answer: A
    Diff: 2 Type: MC Page Ref: 630
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


36. 
    

    The global economic crisis that arose in October 2008 was the result of ____.
    A) higher oil prices
    B) the collapse of the subprime mortgage market
    C) the European debt crisis
    D) fiscal and monetary issues stemming from the US debt ceiling
    Answer: A
    Diff: 2 Type: MC Page Ref: 630
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates

    
    


37. 
    

    The oil crisis in the 1970s led to an unemployment rate of over ____ percent.
    A) 13
    B) 12
    C) 10
    D) 14
    Answer: A
    Diff: 2 Type: MC Page Ref: 630
    Skill: Recall
    Objective List: 26.2 Characterize the discretionary versus nondiscretionary and rules versus
    discretion policy debates