Use the Information Below to Answer the Following Questions

question 38

Multiple Choice

Use the information below to answer the following questions.
Fact 30.1.1 Inflation Control Target Renewal
The 2011 inflation control target agreement between the Government of Canada and the Bank of Canada runs to the end of 2016.
Source: Bank of Canada, November 2011
-Refer to Fact 30.1.1. In the inflation control agreement, the Government of Canada and the Bank of Canada agree to all of the following except that

• A)the target will continue to be defined in terms of the 12-month rate of change in the total CPI.
• B)the inflation target will continue to be 2 percent.
• C)the agreement will run until December 31, 2016.
• D)if the CPI becomes too volatile, in the future the target will be defined in terms of the 12-month rate of change in the core CPI.
• E)the inflation-control range is 1 percent to 3 percent a year.

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Definitions:

Specialize And Trade

The economic practice where individuals or entities focus on the production of a limited range of goods or services to gain efficiency and then trade with others to meet their needs.

Import

The act of bringing goods or services into a country from abroad for sale.

Radios

Devices for receiving and sometimes transmitting sound waves over distances using electromagnetic waves.

Specialize And Trade

A concept in economics where individuals or nations focus on the production of a limited range of goods at which they are most efficient, and then trade with others to meet their diverse needs and wants.