In Canada,the preferred target for the inflation rate is
A) 2%.
B) 0%.
C) 1%.
D) 3%.

Question

Quizplus · Accepted Answer

The Bank of Canada, which is responsible for monetary policy in Canada, has set a target inflation rate of 2%. This target reflects the Bank's belief that low and stable inflation is important for promoting economic growth and maintaining a stable macroeconomic environment. While some argue that a lower inflation target (such as 1%) would be preferable, others argue that a slightly higher target (such as 3%) would be better for promoting economic growth. However, for now, the Bank of Canada appears committed to its current target of 2%.

In Canada,the Preferred Target for the Inflation Rate Is