Answer the following questions with explanation:

Before the coronavirus pandemic, the annual inflation rates in Canada used to be around 2%. However, the inflation rates are near 8% these days.

(i) What does it mean to have an annual inflation rate of 8% in Canada?

(ii) In general, explain how the monetary policy could be responsible for higher inflation rates.

(iii) In general, how could the central bank in Canada lower the inflation rates?

(iv) If the taxes are lowered in Canada, will that help lower or raise the inflation rates?

I will rate accordingly with multiple votes. This is my last attempt. Please do it correctly. Multiple votes will be given.