Question: Decrease in real GDP or a financial innovation will: a.Shifts in the Demand for Money Curve leftward. b.Shifts in the supply for Money Curve right.

Decrease in real GDP or a financial innovation will:

a.Shifts in the Demand for Money Curve leftward.

b.Shifts in the supply for Money Curve right.

c.Shifts in the Demand for Money Curve right.

d.Shifts in the supply for Money Curve leftward.

The monetary base is the sum of:

a.Bank of Canada notes, coins, and banks' deposits at the Bank of Canada.

b.Bank of Canada coins, and banks' deposits at the Bank of Canada.

c.Bank of Canada notes, coins, and factor markets

d.Banks' deposits at the Bank of Canada and the interest rate

In order to increase the spending on goods and services in the short run, the monetary policy that needs to be implemented is:

a.Decrease interest rate

b.Increase taxes.

c.Increase interest rate

d.Print more money

Real GDP controls for:

a.Changes in quantity

b.Changes in population.

c.Changes in prices.

d.Changes in preferences.

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