Monetary Policy Could Be Procyclical If the Bank of Canada

Multiple Choice

Monetary policy could be procyclical if the Bank of Canada

A) is late recognizing that a recession has begun and conducts expansionary monetary policy.
B) is quick to recognize that a recession has begun and conducts expansionary monetary policy.
C) is late recognizing that a recession has begun and does not conduct expansionary monetary policy.
D) is quick to recognize that a recession has begun and does not conduct expansionary monetary policy.
E) is quick to recognize that a recession has ended and conducts contractionary monetary policy.