During the 1975-1981 period, although the Bank of Canada was successful in keeping actual M1 growth within the target range, ________.

Question

Quizplus · Accepted Answer

Despite the Bank of Canada successfully keeping M1 growth within the target range, the inflation rate by the end of the 1970s was almost at the same level as when monetary gradualism was introduced in 1975. Additionally, a series of financial innovations motivated individuals and firms to substitute out of M1 and into M2, which caused the growth rate of M2 to increase.

During the 1975-1981 Period, Although the Bank of Canada Was