The episode of nine successive cuts in the official interest rate in 2001 illustrates that,despite its stated goal of ensuring low and stable inflation,the Bank of Canada is also prepared to act pre-emptively to
A) avoid future recessions.
B) avoid future inflation.
C) avoid future structural unemployment.
D) avoid future expansionary gaps.
E) avoid future budget deficits.

Question

Quizplus · Accepted Answer

The Bank of Canada cut interest rates to stimulate the economy and prevent a recession, showing its willingness to act pre-emptively to support economic growth.

The Episode of Nine Successive Cuts in the Official Interest