In 1994, the federal minister of finance (Paul Martin) appointed Gordon Thiessen as the new governor of the Bank of Canada , who proceeded to
A) continue the tough and unpopular contractionary monetary policy of his predecessor.
B) abandon the tough and unpopular contractionary monetary policy of his predecessor in favour of a low- interest- rate policy.
C) increase the overnight lending rate in order to stabilize the Canadian- U.S. exchange rate.
D) abandon the tough and unpopular contractionary monetary policy of his predecessor in favour of a policy designed to depreciate the Canadian dollar.
E) continue the popular low overnight lending policy of his predecessor.
Correct Answer:
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