Multiple Choice
Consider a central bank that chooses to implement its monetary policy by expanding the money supply by a fixed percentage amount in every year.One important disadvantage with this approach to monetary policy is that it may
A) lead to sustained inflation.
B) be destabilizing if the demand for money is unstable.
C) lead to stable growth of national income.
D) be inconsistent with the Bank of Canada Act.
E) create a recessionary output gap.
Correct Answer:
Verified
Correct Answer:
Verified
Q68: Consider the implementation of monetary policy.One difficulty
Q69: To remove a recessionary gap,the Bank of
Q70: Suppose the Bank of Canada lowers its
Q71: The interest rate that commercial banks charge
Q72: Most central banks in the developed countries
Q74: As of 2018,the Bank of Canada's policy
Q75: Most economists now accept the proposition that<br>A)an
Q76: The diagrams below illustrate two alternative approaches
Q77: Which of the following describes the cause
Q78: The Bank of Canada initially implements an