The monetary policy target the Bank of Canada focuses primarily on today is
A)the unemployment rate.
B)M1.
C)the inflation rate.
D)the overnight interest rate.
E)M2.

Question

Quizplus · Accepted Answer

The Bank of Canada focuses primarily on the overnight interest rate as their monetary policy target. By adjusting the interest rate, they can influence borrowing, spending, and investment, which in turn affects economic growth and inflation. The bank aims to keep inflation within a target range of 1-3% over the long term.

The Monetary Policy Target the Bank of Canada Focuses Primarily