Choose the statement that is incorrect.

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Part 1

A.

The Bank of Canada's job is to control the quantity of money and interest rates to avoid inflation and when possible, prevent excessive swings in real GDP growth and unemployment.

B.

The Bank of Canada's inflation target is the 2 percent midpoint of the 1 to 3 percent inflation-control range.

C.

The Bank of Canada's inflation target is defined in terms of the 12-month rate of change in the total CPI.

D.

The Bank of Canada tries to maximize the output gap, especially when that gap is positive.