In Practice, the Bank of Canada

question 10

Multiple Choice

In practice, the Bank of Canada

• A) does not target inflation.
• B) has a dual mandate, just like the U.S. central bank.
• C) targets inflation, but clearly cares about real economic activity too.
• D) cares only about the path for the money supply.
• E) targets anticipated future inflation.

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Definitions:

Tympanic Ring

A bone or complex of bones in the ear, involved in the transmission of sound vibrations to the inner ear.

Eardrum

A thin membrane in the ear that vibrates in response to sound waves, playing a key role in hearing.

Stapes

A small stirrup-shaped bone in the middle ear, transmitting vibrations from the incus to the inner ear.

Convergent Evolution

The phenomenon where unrelated species develop comparable characteristics independently due to the necessity of adapting to analogous environments or ecological roles.