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The Short- Run Objective of the Bank of Canada Is

Question 36

Multiple Choice

The short- run objective of the Bank of Canada is to ; the long- run objective is to _.


A) enhance any positive shocks; keep inflation within its target band
B) keep actual output within 1%- 3% of potential output; keep the money supply growing at a constant rate
C) reduce any positive or negative output gaps; keep inflation within its target band
D) ignore any shocks as they are automatically adjusting; keep inflation within its target band
E) ignore any shocks as they are automatically adjusting; keep GDP growth constant

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