What is the policy response by the Bank of Canada to an inflationary gap in one region of Canada (e.g.the West) when at the same time a recessionary gap exists in another region of Canada (e.g.Ontario) ?
A) Each regional office of the Bank of Canada implements the appropriate monetary policy for that region.
B) The Bank of Canada implements monetary policy in each region of Canada as required.
C) There are automatic stabilizers inherent in monetary policy that allow the policy to adjust to close the output gap.
D) The Bank of Canada consults with the commercial banks on the appropriate level of deposit creation for each region of the country.
E) The Bank of Canada responds to the average level of inflation in the country and implements a single monetary policy.
Correct Answer:
Verified
Q106: In 1980,the annual inflation rate in Canada
Q107: In 2007 and 2008,Canada was affected by
Q108: In 2007 and 2008,Canada was affected by
Q109: In 1994,Gordon Thiessen was appointed as the
Q110: If the Bank of Canada were required
Q111: The decision by the Bank of Canada
Q112: During the financial crisis that began in
Q113: It might take a while before the
Q115: In 2007 and 2008,Canada was affected by
Q116: During a period of renewed inflation fears
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents