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Question 14 A policy of inflation targeting acts as an automatic stabiliser in the economy, just like automatic Not yet fiscal stabilisers. This statement is... answered Marked out of O a. True, because an inflationary gap is met with a contractionary monetary policy. 1.00 O b. Not true, because inflation targeting automatically maintains inflation within the target range, whereas fiscal stabilisers require government policy decisions. Flag question O c. True, because a recessionary gap is met with an expansionary monetary policy. O d. Not true, because inflation targeting requires active policy decisions by the Bank of Canada, whereas automatic fiscal stabilisers need no policy implementation. O e. True, because inflation targeting and fiscal stabilisers are essentially the same policy tool. Previous page Next page