Why does the Bank of Canada pay close attention to the core inflation rate in addition to the overall CPI inflation rate?
A) The core rate is more volatile and therefore a better predictor of trend inflation.
B) The core rate includes taxes, while the overall CPI rate does not.
C) The core rate has a lower average value and therefore makes the Bank look better.
D) The core rate is less volatile and a better predictor of future CPI inflation.
E) The core rate excludes eight volatile prices and is therefore more likely to stay within the target band.
Correct Answer:
Verified
Q1: The two parts of the inflation-control target
Q3: How is consultation between the Bank of
Q4: Core inflation is the percentage change in
A)the
Q5: 25 basis points is
A)a quarter of a
Q6: The current Governor of the Bank of
Q7: Which of the following benefits flow from
Q8: Who are the members of the Bank
Q9: Choose the statement that is incorrect.
A)The actual
Q10: Which of the following issues is a
Q11: Choose the statement that is incorrect.
A)The Bank
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