Which of the following events would justify the Bank of Canada implementing an expansionary monetary policy,while maintaining its commitment to its inflation target?

Question

Quizplus · Accepted Answer

A major decline in the Canadian stock market could indicate a downturn in economic activity, potentially leading to lower consumer and business confidence, reduced spending, and slower economic growth. In such a scenario, the Bank of Canada might implement an expansionary monetary policy to stimulate the economy, while still aiming to keep inflation within its target range.

Which of the Following Events Would Justify the Bank of Canada