a. What was the state of the Canadian economy in 2011? b. What was the Bank of

Question:

a. What was the state of the Canadian economy in 2011?
b. What was the Bank of Canada’s expectation about future real GDP growth and inflation in September 2011?
c. How would maintaining the overnight rate at 1 percent influence the market for bank reserves, the loanable funds market, and aggregate demand and aggregate supply?
d. How would you expect the Canadian dollar to feature in the transmission of monetary policy to real GDP and the price level? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...