To Keep Inflation from Falling Below the Target Range, the Bank

question 49

Multiple Choice

To keep inflation from falling below the target range, the Bank of Canada ________.

• A) decreases the target for the overnight rate which causes the dollar to go down
• B) decreases the target for the overnight rate which causes the dollar to go up
• C) increases the target for the overnight rate which causes the dollar to go down
• D) increases the target for the overnight rate which causes the dollar to go up

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