A Reason That the Inflation Rate Did Not Increase Substantially

question 37

Multiple Choice

A reason that the inflation rate did not increase substantially following the Great Recession is that

• A) the increase in the monetary base was accompanied by larger-than-expected increases in the money supply.
• B) the Bank of Canada quickly implemented contractionary fiscal policy to prevent an increase in the inflation rate.
• C) the recovery from the recession was slow.
• D) the Bank of Canada quickly implemented contractionary monetary policy to prevent an increase in the inflation rate.