Considering the past economic history of Canada, high rates of price inflation are typically accompanied by:

Question

Quizplus · Accepted Answer

High rates of price inflation are typically accompanied by high nominal interest rates in Canada. The central bank may increase the policy interest rate in order to control inflation by making borrowing more expensive and reducing demand in the economy. This can lead to higher nominal interest rates in the market as well.

Considering the Past Economic History of Canada, High Rates of Price