If the Bank of Canada Wants to Influence Real Economic

Multiple Choice

If the Bank of Canada wants to influence real economic variables in the short run,it uses

A) policy instruments such as the exchange rate and investment to influence the economy.
B) its only policy instrument-the overnight interest rate target-to influence aggregate demand.
C) policy variables such as the exchange rate and investment to influence aggregate demand.
D) policy variables such as open-market operations to influence aggregate demand.
E) policy variables such as the money supply to influence investment and aggregate supply.