The Objective of the Bank of Canada's Monetary Policy Is

question 41

Multiple Choice

The objective of the Bank of Canada's monetary policy is

• A)to keep the unemployment rate below 5 percent, the inflation rate between 1 and 3 percent a year, and long-term real GDP growth above 4 percent a year.
• B)to control the quantity of money and interest rates to avoid inflation and when possible prevent excessive swings in real GDP growth and unemployment.
• C)to keep the unemployment rate below 5 percent, the inflation rate between 1 and 3 percent a year, and long-term interest rates below 4 percent a year.
• D)to keep the labour force participation rate above 80 percent, the inflation rate below 2 percent a year, and the exchange rate fluctuating by less than 3 percent a year.
• E)to keep the overnight loans rate below 2 percent a year and the unemployment rate at its natural rate.

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Definitions:

Surgeon

A physician who uses hands and medical instruments to diagnose and correct deformities and treat external and internal injuries or disease.

Urologist

A medical doctor specializing in diseases and conditions affecting the urinary system and the male reproductive organs.

Gynecologist

A specialist who performs routine physical care and examinations of the female reproductive system.

Orthopedics

The branch of medicine dealing with the correction of deformities of bones or muscles.