A reason that the inflation rate did not increase substantially following the Great Recession is that
A) the increase in the monetary base was accompanied by larger-than-expected increases in the money supply.
B) the Bank of Canada quickly implemented contractionary fiscal policy to prevent an increase in the inflation rate.
C) the recovery from the recession was slow.
D) the Bank of Canada quickly implemented contractionary monetary policy to prevent an increase in the inflation rate.

Question

Quizplus · Accepted Answer

The slow recovery from the recession meant that demand-pull inflation pressures were weak, keeping the inflation rate from rising substantially.

A Reason That the Inflation Rate Did Not Increase Substantially