Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Fall 2020, Macroeconomics > post-midterm > Flashcards

post-midterm Flashcards

(56 cards)

Start Studying
1
Q

What is the role of the bank of Canada “broadly”

A

promote economic and financial welfare.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 3 objectives of the bank of Canada?

A

1- control inflation (1-3%)
2- stimulate consumption (up GDP)
3- control the growth and liquidity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the money supply?

A

the total amount of money in circulation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the two main goals of controlling the money supply?

A

preserving the value of the money

keeping inflation at a low, stable and predictable rate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why do we want the inflation to be at a low, stable and predictable rate? 3

A

Canadians can make decisions with confidence
greater productivity and constant job creation
improvement of the standard of living

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Explain how the bank system functions in Canada.

A

1 federal bank that creates and designs money -BC

Others are commercial, private owned, profit seeking institutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the overnight interest rate?

A

interest rate between major financial institutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How do we call the target rate set up by the bank of Canada?

A

Bank’s policy interest rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The overnight interest rate affects other rates, name 3?

A

consumers loan
mortgages interest rate
corporate borrowing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What would be the effect of the interest rate going down?

A

people borrow more and spend more money. Inflation goes up and it boosts the economy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What would be the effect of the interest rate going up?

A

slows the borrowing, Inflation goes down. Mortgages prices go up and people borrow less money. Incentive for investments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What was the economic situation in Zimbabwe between 1999 and 2009?

A

unemployement rate around 80%
farmers are unable to get loans
banking system collapsed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What did the president Mugabe do?

A

printing more money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Name the four effects that printing more money had on the economy. Reason why it cause a hyperinflation…

A

1- increasing the money supply created a surplus of money = the purshasing power of the dollar went down.
2- increase of income fast = increase in demand= shortage and prices went up
3- the production of goods went down - demand exeeded supply which created a shortage = prices went up
4- Prices went up daily - would sometimes double and triple in one day

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is fiscal policies?

A

Role of governement in the decisions concerning the sources of revenue and the public spending

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the 3 main coals of fical policies?

A 
full employment 
price stability (inflation) 
economic growth (GDP)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How do the government calculate the budget balance? It help us see if we have a ______ or a ______

A

revenue (taxes) - spending
deficit
surplus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Name the 3 types of taxes?

A

personal income tax
corporate taxes
consumption taxes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

On what are applied the personal income taxes and one what are they not?

A

applied on the income. except for credit, deductions and exeptions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the 3 ways to calculate personal income taxes? which one is used in Canada and most countries?

A

Progressive (canada)
proportional
regressive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Corporate taxes are subject to “double taxation” explain.

A

Taxed on consumption and profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the consumption tax rates in Quebec and in Canada?

A

Federal: 5%
Quebec: 9.975%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the main spending of the governement?

Study These Flashcards
A

social services 35%

24
Q

Explain the difference in the Emergency Response plan in a pandemic recession or a normal rcession?

Study These Flashcards
A

Pandemic: relief to individual
Normal: stimulate economy

25
When we dont have enough money we _______, which creates what we call in Canada the ____ _____. We owe it to _____.
borrow public dept taxpayers.
26
Standards of living are closely related to _____
quality of life
27
Standards of living are based on 4 factors, name them?
economic and political stability environment quality Safety
28
What are the 4 basic materials of standards of living?
Income GDP Life expectancy and economic opportunity
29
What is a quick way to measure the standards of living and why?
GDP per capita | total amount of goods and services per head
30
What are the 3 factors that the UN measures the human developpment index?
Life expectancty at birth Education income per capita
31
What is interational trade?
exchange of capital, goods, services across international borders or territories
32
What is the relationship between world GDP and world trade? Explain mathematic formula
Positive. | GDP = C + I + G ( X - M)
33
The countries benefit of trade because of... the economic ____ and ____ _data__ jobs in Canada is linked to _____ income up by _data__ since _____ greater ___ and ___ at ______
growth and prosperity 1/6 exports 15-40% - free trade services and goods at lower prices
34
What is the advantage of free-trade on growth? 3
Bigger market reduces costs standards of living
35
What is the advantage of free-trade on diversity?
Products are more diverse because come from everywhere
36
What is the advantage of free-trade on information?
Common knowledge, more knowledge
37
What is the advantage of free-trade on social services? 3
Beter acces education, health, people live longer lives
38
What is the advantage of free-trade on specialization? explain why positive
improves efficiency in production. Reduces problems of scarcity
39
Which free-trade agreement was signed on january 1st, 1994?
NAFTA between Canada, US, Mexico
40
What is the new free trade agreement that will, when accepted, replace this one, and has been since 2017?
CUSMA
41
CETA Who? Name? When?
Europe and Canada Comprehensive economic trade Agreement 2017
42
CPTPP Who? Name? When?
Many countries such as Vietnam, singapour, china, US, Autralia Comprehensive Progressive Agreement Trans-Pacific Partnership
43
Why is Canada diversifying its economy?
Depend on US
44
What does Canada export? name 4
``` Fuels and oils vehiculs wood machinery aircraft ```
45
What does Canada import? name 4
Vehiculs, machinery, electrical stuff, mineral fuels and oils, plastics, medical and pharmaceutical, food and wine
46
What is the definition of the exchange rate?
Amount of money you can prushase with 1 unity of a foreign currency. So how much one currency is worth int therms of other units
47
What is appreciation and deppreciation when it comes to the exchange rate?
Appreciation is when the rate goes up | Deppreciation is when the rate goes down
48
When the Canadian exchange rate goes ____ or overseas goes ___, it is good for imports.
up | down
49
When the Canadian exchange rate goes down it is good for ____ because higher ____ _____
exports | purchasing power
50
Name 4 of the 6 things that can influence the exchange rate?
``` 1- demand and supply 2- foreign investments 3- strenght other currencies 4- inflation and interest rates 5- specultation and confidence 6- trade balance (x-m) ```
51
Why does demand and supply has an effect on echange rates?
because demand for our dollar goes up, value goes down
52
Free trade can have negative impacts. Name them. 5
1- loss of culture 2- environment and mass pollution 3- uneven consumption and urban congestion 4- reduction quality in products 5- deficit in trade balance and international debt.
53
What could be the impact of too much imports? Why
destroy domestic jobs and companies. Competition is china and bangladesh
54
What would be the impact if canada slow the imports? 2
increase GDP | Stable inflation
55
To decrease imports, canada could impose ____, which are restrictions to foreign imports. This would ____ the price of the international good because the ____ would go down. Therefore, the ____ for local goods would go up, the ____ would go up (because predictable) and the goods would be of ___ ____ ____.
Quotas increase supply demand supply higher quality norms
56
To reduce the imports, Canada could impose ___ on costs of imports, we call this technique _____. The ____ of international goods would ____, which would put a _____ pressure on the price.
``` taxes protectionism supply decrease upward ```

Fall 2020, Macroeconomics (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions