If We Observe That the Actual Rate of CPI Inflation

question 20

Multiple Choice

If we observe that the actual rate of CPI inflation has fallen,we can certainly conclude that the

• A)Bank of Canada has implemented an expansionary monetary policy.
• B)Bank of Canada has implemented a contractionary monetary policy.
• C)Bank of Canada has abandoned its inflation target.
• D)Government of Canada has reduced the money supply.
• E)It is not possible to conclude any of the above.