One of the Results of the Restrictive Monetary Policy Adopted

Multiple Choice

One of the results of the restrictive monetary policy adopted by the Bank of Canada in the early 1980s was that

A) inflation fell dramatically and real GDP remained at full employment levels.
B) inflation fell dramatically,but was accompanied by a major recession.
C) inflation remained over 10%,but the Bank of Canada avoided a major recession.
D) inflation remained over 10% and there was a major recession.
E) unemployment fell,but inflation accelerated due to higher interest rates.