Use the Information Below to Answer the Following Questions

question 71

Multiple Choice

Use the information below to answer the following questions.
Fact 14.1.1 Inflation Control Target Renewal
The 2016 inflation control target agreement between the Government of Canada and the Bank of Canada runs to the end of 20 Source: Bank of Canada, November 2016
-Refer to Fact 14.1.1.In the inflation control agreement, the Government of Canada and the Bank of Canada agree to all of the following except that

• A)the inflation target will continue to be 2 percent.
• B)if the CPI becomes too volatile, in the future the target will be defined in terms of the 12- month rate of change in the core CPI.
• C)the target will continue to be defined in terms of the 12- month rate of change in the total CPI.
• D)the inflation- control range is 1 percent to 3 percent a year.
• E)the agreement will run until December 31, 2016.

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