In General, the Bank of Canada Has NOT Embraced a Fixed-Growth-Rate

question 12

Multiple Choice

In general, the Bank of Canada has NOT embraced a fixed-growth-rate monetary policy.Why is this the case?  

• A) because the Bank of Canada directors would lose their jobs if a fixed-growth-rate monetary policy was adopted 
• B) because no influential economists have yet come out in favour of a fixed-growth-rate monetary policy 
• C) because the Bank of Canada prefers active fiscal policy 
• D) because the Bank of Canada directors believe the economy is too complex and too changeable to make a fixed-growth-rate monetary policy work consistently

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Definitions:

Trade Impact

Refers to the effects of trade policies and practices on the economy, including how they influence job creation, industry growth, and the balance of trade among countries.

Iroquois

A Native American confederacy made up of several tribes, originally including the Mohawk, Oneida, Onondaga, Cayuga, and Seneca peoples, known for their influential political structure and role in American colonial history.

Hurons

A Native American tribe, also known as the Wyandot, originally located in the Great Lakes region, known for their farming, trading, and alliance with the French during colonial times.

Jamestown Colony

The first permanent English settlement in North America, established in Virginia in 1607.