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a)Who is the monetary authority in Canada? (1 mark) b)Describe what is meant by a fractional reserve banking system (2 marks) c) What is the
a)Who is the monetary authority in Canada? (1 mark)
b)Describe what is meant by a "fractional reserve banking system" (2 marks)
c)What is the objective of monetary policy? (1 mark)
d)Describe one goal of monetary policy. (2 marks).
e) Suppose Canada was in an expansionary phase of the business cycle and inflation was approaching 3 percent. What type of monetary policy would be called for? Explain in detail two monetary tools that will used and what the impact will be on the economy
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