In Practice,the Bank of Canada Uses Monetary Policy to Reduce

Multiple Choice

In practice,the Bank of Canada uses monetary policy to reduce undesirable fluctuations in real GDP by

A) controlling business investment expenditures directly.
B) controlling government spending.
C) influencing market interest rates through changes in its target for the overnight interest rate.
D) directly influencing the money supply which affects the interest rate and hence,consumption and investment.
E) targeting the money supply directly.