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Why Would Businesses Watch the Bank of Canada for Signs

Question 17

Multiple Choice

Why would businesses watch the bank of Canada for signs of changing interest rates?


A) Changes in the Bank of Canada's key policy rate determine the cost of the labour.
B) Many consumers borrow heavily to finance durable products, sales of these goods are likely to rise when the Bank of Canada lowers the interest rate.
C) Changes in Bank of Canada policy determine the federal income tax rate.
D) Changes in the Bank of Canada's key policy rate are good indicators of federal government spending decisions.
E) Many consumers base their expectations of future income on the Bank of Canada's policy announcements.

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