The Case for Bank of Canada Independence Does Not Include

question 72

Multiple Choice

The case for Bank of Canada independence does not include the idea that ________.

• A) political pressure would impart an inflationary bias to monetary policy
• B) a politically insulated Bank would be more concerned with long-run objectives and thus be a defender of a sound dollar and a stable price level
• C) a Bank of Canada under the control of the government might make the so-called political business cycle more pronounced
• D) the principal-agent problem is perhaps worse for the Bank of Canada than for politicians since the former does not answer to the voters on election day

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Definitions:

Stepfamilies

Family units formed by the remarriage of a divorced or widowed person that include a child or children from a previous marriage.

Nuclear Families

A family structure consisting of two parents (a mother and a father) and their children, considered the traditional family unit.

Cohesive

Characterized by unity; sticking together tightly or working well together to form a whole.

Complexity

The state or quality of being intricate or complicated, often involving multiple interconnected parts.