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If We Observe That the Actual Rate of CPI Inflation

Question 27

Multiple Choice

If we observe that the actual rate of CPI inflation has increased, we can conclude that the


A) Bank of Canada has abandoned its inflation target.
B) Bank of Canada has implemented a contractionary monetary policy.
C) Government of Canada has reduced the money supply.
D) Bank of Canada has implemented an expansionary monetary policy.
E) -- it is not possible to conclude any of the above.

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