When interest rates in the United States increased sharply in late 1979,the Bank of Canada responded by an extremely restrictive monetary policy to ________.

Question

Quizplus · Accepted Answer

When interest rates in the United States increased sharply in late 1979, the Bank of Canada responded by implementing an extremely restrictive monetary policy to resist the possible inflationary shock from import prices and to prevent a depreciation of the Canadian dollar. Thus, both options A and B are correct.

When Interest Rates in the United States Increased Sharply in Late