5. Which of the following assets performs best in times of cost-push inflation?(A) Gold.(B) Agricultural real estate.(C) Stocks.(D) Bonds.6. The Bank of Canada wishes to reduce the money supply, implementing a tightmonetary policy. Which of the following is NOT consistent with this goal?(A) Reducing the reserve requirement for banks.(B) Selling government bonds.(C) Increasing the target for the overnight rate.(D) Printing less currency.7. Suppose that the Bank of Canada increases the Bank Rate from 0.25 to 7 percent.Which of the following is the Overnight Rate Target?(A) 7.25 percent.(В) 7 percent.(С) 6.75 рercent.(D) 6.5 percent.8. Consider a fractional-reserve banking system in which an initial deposit of $1,000 cangenerate up to $1,000,000 in money. What is the reserve ratio?(А) 10 рercent.(B) 5 percent.(C) 1 percent.(D) 0.1 percent.

The type of inflation which causes a rise in prices through an increase in production factors…

Answered: 5. Which of the following assets…

5. Which of the following assets performs best in times of cost-push inflation? (A) Gold. (B) Agricultural real estate. (C) Stocks. (D) Bonds.

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 6QCMC

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Question

5. Which of the following assets performs best in times of cost-push inflation?
(A) Gold.
(B) Agricultural real estate.
(C) Stocks.
(D) Bonds.
6. The Bank of Canada wishes to reduce the money supply, implementing a tight
monetary policy. Which of the following is NOT consistent with this goal?
(A) Reducing the reserve requirement for banks.
(B) Selling government bonds.
(C) Increasing the target for the overnight rate.
(D) Printing less currency.
7. Suppose that the Bank of Canada increases the Bank Rate from 0.25 to 7 percent.
Which of the following is the Overnight Rate Target?
(A) 7.25 percent.
(В) 7 percent.
(С) 6.75 рercent.
(D) 6.5 percent.
8. Consider a fractional-reserve banking system in which an initial deposit of $1,000 can
generate up to $1,000,000 in money. What is the reserve ratio?
(А) 10 рercent.
(B) 5 percent.
(C) 1 percent.
(D) 0.1 percent.

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