During the Period of Economic Recovery Between 1983 and 1987,the

question 56

Multiple Choice

During the period of economic recovery between 1983 and 1987,the main challenge for the Bank of Canada was to

• A)accommodate the recovery,and the associated growth in money demand,without increasing the money supply so much as to refuel inflation.
• B)decrease the money supply to dampen inflationary expectations.
• C)increase the money supply so that only a mild form of inflation would reappear.
• D)stabilize the exchange rate between the U.S.and Canadian dollars.
• E)stabilize the unemployment rate.