If the Bank of Canada's announcements about upcoming monetary policy decisions are not credible, which of the following would you expect to see?
A) Inflation expectations will accurately reflect actual inflation.
B) Expansionary monetary policy will result in lower rates of inflation.
C) Firms and workers will be unable to accurately forecast changes in the rate of inflation.
D) The Bank of Canada will have more control over the inflation rate.
E) People will begin to ignore inflation all together.
Correct Answer:
Verified
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