If the Bank of Canada wants to influence real economic variables in the short run, it uses
A) its only policy instrument-the overnight interest rate target-to influence aggregate demand.
B) policy variables such as the money supply to influence investment and aggregate supply.
C) policy instruments such as the exchange rate and investment to influence the economy.
D) policy variables such as the exchange rate and investment to influence aggregate demand.
E) policy variables such as open- market operations to influence aggregate demand.
Correct Answer:
Verified
Q63: In Canada, open- market operations are
A)no longer
Q64: The amount of currency in circulation in
Q65: Most central banks accept that, in the
Q66: In practice, it is not possible for
Q67: The bank rate is the
A)interest rate at
Q69: Suppose Canadian real GDP is currently equal
Q70: The best description of the cause- and-
Q71: In 2007 and 2008, Canada was affected
Q72: Suppose Canadian real GDP is equal to
Q73: The interest rate that commercial banks charge
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