When the inflation rate is 0.5 percent, the Bank of Canada will sell bonds to lower interest rates and accelerate the economy.

Question

Quizplus · Accepted Answer

When the inflation rate is only 0.5 percent, the Bank of Canada may not necessarily sell bonds to lower interest rates and stimulate the economy. The Bank of Canada takes various factors into consideration when making its monetary policy decisions, including inflation targets, economic growth, employment levels, and financial stability. Therefore, it may choose different tools and strategies to achieve its objectives depending on the prevailing economic conditions.

When the Inflation Rate Is 0