One of the results of the restrictive monetary policy adopted by the Bank of Canada in the early 1980s was that

Question

Quizplus · Accepted Answer

The restrictive monetary policy adopted by the Bank of Canada led to a significant decrease in inflation, but this was accompanied by a major recession. This is because the policy involved raising interest rates and reducing the money supply, which made it more expensive for businesses to borrow and invest, and reduced consumer spending. As a result, there was a significant contraction in the economy, leading to higher unemployment and lower output.

One of the Results of the Restrictive Monetary Policy Adopted