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2017 2018 Inflation 122.00 126.50 GDP 1973.40 2039.20 Unemployment Rate 6.90 6.30 Exchange Vs $US 1.01 0.97 Given the above information (Next page): A Calculate

2017

2018

Inflation

122.00

126.50

GDP

1973.40

2039.20

Unemployment Rate

6.90

6.30

Exchange Vs $US

1.01

0.97

Given the above information (Next page):

A Calculate the inflation rate for 2015. Is this inside the range desired by the Bank of Canada? Why or why not?

B Based on your answer above, what action is the Bank of Canada likely to take?

C Based on the information above, what are your expectations for interest rates? Based on those expectations, if you are a bond speculator, what type of bonds should you be buying or selling?

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