BSM 100 Lecture Notes - Lecture 3: Structural Unemployment, Business Cycle, Job Satisfaction
Document Summary
U. s. "08- economic crisis impact on canada. Exports were reduced, imports were cheaper because there was a need to sell the items. Balance of trade (deficit) income decreases, so the employment situation becomes unknown. Tourism: tourists from the u. s decreased and it was cheaper for canadians to visit the. Fiscal policy: taxation and spending decision influence the economy. Provides banking services for other banks and the government. How the bank of canada controls money supply. When the money supply is too much, the bank of canada has to make sure the money is reduced and reasonable. Supply is a lot, it is easy to take out money and interest rate is low. The government can take away the money supply through the (government of canada. Bonds + treasure bills in the open market) aka securities. Money is reduce through the saving bonds and the interest rate increases which leads to the decline of the inflation.