The case for Bank of Canada independence includes the idea that ________.
A) a politically insulated Bank of Canada would be more concerned with long-run objectives and thus be a defender of a sound dollar and a stable price level
B) a Bank of Canada under the control of the government might make the so-called political business cycle more pronounced
C) the principal-agent problem is perhaps worse for the Bank than for politicians since the former does not answer to the voters on election day
D) A and B only.
Correct Answer:
Verified
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