Choose the statement about inflation rate targeting that is

incorrect.

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Part 1

A.

The Bank of Canada uses the Taylor Rule to set the overnight loans rate.

B.

Inflation targeting focuses the public debate on what monetary policy can achieve and the best contribution it can make to attaining full employment and sustained growth.

C.

Inflation targeting is used by Canada, Australia, New Zealand, Sweden, the United Kingdom, and the European Union.

D.

An explicit inflation target that is taken seriously and toward which policy actions are aimed and explained is a sensible way to manage inflation expectations.