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In 1994, the Federal Minister of Finance (Paul Martin)appointed Gordon

Question 96

Multiple Choice

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.

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