Which of the following best represents Canada's fiscal and monetary policies in response to the 2008-2009 financial crisis and recession?
A)Government followed a contractionary fiscal policy,but Bank of Canada followed an expansionary monetary policy.
B)Government followed an expansionary fiscal policy,but Bank of Canada followed a contractionary monetary policy.
C)Both government and Bank of Canada followed an expansionary policy.
D)Both government and Bank of Canada followed a contractionary policy.

Question

Quizplus · Accepted Answer

During the 2008-2009 financial crisis and recession, the Canadian government implemented expansionary fiscal policies, such as increasing government spending and cutting taxes, to stimulate demand in the economy. At the same time, the Bank of Canada implemented expansionary monetary policies, such as lowering interest rates and increasing the money supply, to support lending and investment in the economy. These policies were aimed at boosting economic growth and mitigating the impact of the global recession on Canada's economy.

Which of the Following Best Represents Canada's Fiscal and Monetary