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What Is the Problem Associated with the Bank of Canada

Question 2

Multiple Choice

What is the problem associated with the Bank of Canada targeting money supply as a method of monetary policy?


A) Interest rates will be too low and create a recession.
B) Interest rates will fluctuate depending on the demand for money.
C) The Bank of Canada will print too much money.
D) Interest rates will be too low and increase prices.

Correct Answer:

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