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The Response of the Bank of Canada to the Real-World

Question 121

Multiple Choice

The response of the Bank of Canada to the real-world uncertainties surrounding the conduct of monetary policy is to proceed


A) aggressively and change the official interest rate by at least 0.75 percentage points at any one time.
B) aggressively and change the official interest rate by at least 0.5 percentage points at any one time.
C) aggressively and change the official interest rate by exactly 0.5 percentage points at any one time.
D) cautiously and usually change the official interest rate by no more than 0.25 percentage points at any one time.
E) cautiously and change the official interest rate by more than 0.50 percentage points at any one timE.

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