Which of the following events would justify the Bank of Canada implementing an expansionary monetary policy,while maintaining its commitment to its inflation target?

Question

Quizplus · Accepted Answer

A major decline in the Canadian stock market index could lead to reduced wealth and potentially lower spending by consumers and businesses, which might slow down the economy. In such a scenario, the Bank of Canada might implement an expansionary monetary policy to stimulate economic activity, while still aiming to keep inflation within its target range.

Which of the Following Events Would Justify the Bank of Canada