The objective of the Bank of Canada's monetary policy is
A) to keep the overnight loans rate below 2 percent a year and the unemployment rate at its natural rate.
B) to keep the labour force participation rate above 80 percent, the inflation rate below 2 percent a year, and the exchange rate fluctuating by less than 3 percent a year.
C) to keep the unemployment rate below 5 percent, the inflation rate between 1 and 3 percent a year, and long- term interest rates below 4 percent a year.
D) to keep the unemployment rate below 5 percent, the inflation rate between 1 and 3 percent a year, and long- term real GDP growth above 4 percent a year.
E) to control the quantity of money and interest rates to avoid inflation and when possible prevent excessive swings in real GDP growth and unemployment.
Correct Answer:
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Q1: Who are the members of the Bank
Q2: As the sole issuer of Canadian money,
Q4: How is consultation between the Bank of
Q5: One criticism of the Bank of Canada's
Q6: Which of the following benefits flow from
Q7: Choose the statement that is incorrect.
A)The actual
Q8: Which of the following issues is a
Q9: What is the overnight loans rate?
A)the percentage
Q10: How can the Bank of Canada use
Q11: The settlement balances rate is the
A)proportion of
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