The Taylor Rule Specifies That the Bank of Canada Should

question 37

Multiple Choice

The Taylor rule specifies that the Bank of Canada should increase the overnight rate as inflation _____ and the GDP gap _____.

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases

---

Definitions:

Registration Statement

A document submitted to regulatory authorities detailing a company's financials and other significant information, used primarily during the issuance of new stock.

Prefiling Period

Prefiling period is the timeframe before the official submission or filing of a legal document or case in a court or regulatory body.

Register Securities

The process of recording and maintaining financial securities with a regulatory body, often required for securities to be legally sold to the public.

Average Investor

An individual or entity that makes investment decisions based on typical financial goals and risk tolerance, often represented as a general public member.