A criticism of the Bank of Canada's focus on an inflation control target is that
A) if inflation falls below the target range, a recession will result.
B) if inflation rises above the target range, the Bank decreases aggregate demand and could create a recession and unemployment.
C) the Bank pays too much attention to unemployment and real GDP growth and not enough to inflation control.
D) it makes it hard to set expectations of inflation.
E) the Bank rarely achieves its target.
Correct Answer:
Verified
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