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As the Sole Issuer of Canadian Money, the Bank of Canada

Question 2

Multiple Choice

As the sole issuer of Canadian money, the Bank of Canada can set any one of three variables:


A) the rate of inflation, the interest rate, and the natural unemployment rate.
B) the monetary base, the exchange rate, and the short- term interest rate.
C) the monetary base, the interest rate, and the natural unemployment rate.
D) the inflation rate, the natural unemployment rate, and the real economic growth rate.
E) the exchange rate, the interest rate, and the inflation rate.

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