In Recent Years, the Bank of Canada Has

Multiple Choice

In recent years, the Bank of Canada has:

A) paid closer attention to M1 than M2 in setting monetary targets.
B) relied more on changes in the prime rate than open-market operations in establishing monetary policy.
C) has increased M2 at a fixed annual rate, regardless of the health of the economy.
D) taken an activist, pragmatic approach to monetary policy, has a publicized target on the overnight lending rate and has adopted the inflation targeting strategy.