Given Its Existing Policy Regime of "Inflation Targeting," the Bank

question 54

Multiple Choice

Given its existing policy regime of "inflation targeting," the Bank of Canada would likely react to a large positive aggregate demand shock by

• A)lowering the bank rate.
• B)buying bonds from the open market.
• C)increasing its target for the overnight interest rate.
• D)decreasing its target for the overnight interest rate.
• E)ignoring the shock and allowing the economy to adjust.

---

Definitions:

Social Equals

Individuals or groups holding similar status, rights, and opportunities in society, without discrimination or hierarchical distinctions.

Menial Labor

Unskilled manual work that is often repetitive and underpaid, typically requiring little to no formal education and performed by workers in lower socioeconomic positions.

Combat Positions

Roles within a military force that directly engage with or support frontline engagement against the enemy, encompassing roles in infantry, artillery, and special operations units.

Equal Rights

The principle that all people should have the same rights and opportunities without discrimination on any grounds.