In the Central Bank Commitment Story,high Inflation in Canada During

Multiple Choice

In the central bank commitment story,high inflation in Canada during the 1970s was caused by

A) lower interest rates.
B) a deterioration of the trade balance.
C) an appreciation of the domestic exchange rate.
D) the inability of the Bank of Canada to commit to not using surprise inflation to increase output in the short run.
E) a commitment on the part of the federal government to reduce government spending.