If We Observe That the Actual Rate of CPI Inflation

question 7

Multiple Choice

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

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

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Definitions:

Progestogen

A class of steroid hormones that promotes gestation and is involved in the menstrual cycle and pregnancy.

Expulsion

The process of driving or forcing out something or someone from a place or situation.

Labor

The process of childbirth, especially the period from the start of uterine contractions to delivery.

Hyster/o

A prefix in medical terminology relating to the uterus.