Putting the Bank of Canada under control of the government ________.

Question

Quizplus · Accepted Answer

Option A is a potential consequence of putting the Bank of Canada under government control, as the government may use the central bank to finance its budget deficits. Option B is another possible negative outcome, as the government may be motivated to implement expansionary monetary policies to boost economic growth, even if it leads to inflation. Option C highlights the potential risks of political interference in monetary policy decisions. Thus, both options A and B are valid concerns if the Bank of Canada were put under the control of the government.

Putting the Bank of Canada Under Control of the Government