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.

---

Definitions:

Thomas Theorem

Classic formulation of the way individuals determine reality, whereby “if people define situations as real, they are real in their consequences”.

Erving Goffman

A sociologist known for his analysis of human interactions and the development of the concept of dramaturgical analysis.

George Herbert Mead

An American sociologist and psychologist, known for his significant contributions to the development of symbolic interactionism and social psychology.

Emotional Self-Control

The ability to manage and regulate one's emotions, responses, and reactions in a way that is considered appropriate and effective in a given context.