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 both the depreciation of the Canadian dollar and the possible inflationary shock from import prices.

When Interest Rates in the United States Increased Sharply in Late