Monetary policy refers to the actions the Bank of Canada takes to manage
A)the money supply and income tax rates to pursue its economic objectives.
B)the money supply and interest rates to pursue its economic objectives.
C)income tax rates and interest rates to pursue its economic objectives.
D)government spending and income tax rates to pursue its economic objectives.
E)the money supply to meet its budgetary objectives.

Question

Quizplus · Accepted Answer

Monetary policy refers to the actions taken by the central bank to manage the money supply and interest rates to achieve its economic objectives such as stable inflation, low unemployment, and economic growth. The Bank of Canada uses various tools such as open market operations, changes in the overnight lending rate, and reserve requirements to influence the money supply and interest rates in the economy.

Monetary Policy Refers to the Actions the Bank of Canada