Which of the Following Events Would Justify the Bank of Canada

question 64

Multiple Choice

Which of the following events would justify the Bank of Canada implementing an expansionary monetary policy, while maintaining its commitment to its inflation target?

• A)The appreciation of the Canadian dollar due to increases in the world prices of oil and raw materials given the fact that Canada is a major producer and exporter of these goods.
• B)The OPEC oil- price shocks that result in inflation.
• C)The U.S. economy increasing its demand for Canadian goods and services.
• D)The stock market crash following the terrorist attacks on September 11, 2001.
• E)The depreciation of the Canadian dollar due to persistent current account deficits of Canada.

---

Definitions:

Perception Of Reality

How individuals interpret the world around them, which can differ significantly from person to person based on experiences and beliefs.

Previous Experiences

The events or activities that an individual has encountered or participated in before the present time, often influencing current behavior or decisions.

Viewpoints

Perspectives or angles from which individuals consider or evaluate an issue or topic.

Induction

The process of introducing a new employee to their job and the organization, involving training and orientation.