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
Correct Answer:
Verified
Q31: An expansionary monetary policy by the Bank
Q32: Which of the following goods are included
Q33: An example of how inflation targeting by
Q34: If the Bank of Canada chooses to
Q35: Suppose the Bank of Canada lowers its
Q37: The economic variables that the Bank of
Q38: the price level.
A)3 only
B)1 only
C)1, 2, and
Q39: It is widely accepted by economists that
Q40: Consider the following statement about inflation targeting:
Q41: Suppose Canadian real GDP is equal to
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