Which of the Following Is True About the Bank of Canada

Multiple Choice

Which of the following is true about the Bank of Canada and its ability to prevent recessions? The Bank of Canada

A) does not try to eliminate recessions, but instead focuses on preventing inflation.
B) can fine tune the economy and realistically hope to keep the economy from experiencing recessions.
C) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.
D) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions.
E) due to recent innovations in monetary policy the Bank of Canada can prevent all but the most severe recessions.