The Decision by the Bank of Canada and Many Other

Multiple Choice

The decision by the Bank of Canada and many other central banks to target the rate of inflation partly reflects the evidence of the

A) long-run neutrality of money.
B) link between the money supply and the exchange rate.
C) power of the overnight lending rate to affect long-run investment.
D) power of the overnight interest rate to affect consumer borrowing.
E) link between the output gap and the money supply.