If We Observe That the Bank Rate Has Fallen, We

question 34

Multiple Choice

If we observe that the bank rate has fallen, we can conclude that the

• A)Bank of Canada has abandoned its inflation target.
• B)Government of Canada has reduced the money supply.
• C)Bank of Canada has implemented a contractionary monetary policy.
• D)Bank of Canada has implemented an expansionary monetary policy.
• E)Bank of Canada has adjusted the rate it pays on Treasury bills.

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