The 1981-82 recession in Canada
A)was caused by an increase in oil prices.
B)was a side effect of tight monetary policy.
C)was coincident with the global financial crisis.
D)was the least-severe recession in the 1961 2018 period.
E)was caused by fiscal policy.

Question

Quizplus · Accepted Answer

The 1981-82 recession in Canada was a side effect of tight monetary policy. The Bank of Canada had raised interest rates sharply to combat inflation, which led to a contraction in the economy.

The 1981-82 Recession in Canada