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Question 1 (3 points) - requires online searching We have discussed inflation targeting by the bank of Canada. But which inflation? i. Search the Bank
Question 1 (3 points) - requires online searching We have discussed inflation targeting by the bank of Canada. But which inflation? i. Search the Bank of Canada's website for what form of CPI it uses. ii. Search online to figure out how CPI is calculated. Provide a numerical example. iii. Search online to figure out what is the difference between the two main types of inflation the Bank of Canada uses. Question 2 (3 points) Learning about crypto currencies! Fun times, we learned that cryptocurrencies all had different types of characteristics. Can you find one that would be suitable for Canada? Provide reasoning based on the characteristics of the coins and how it would be a great fit in Canada. Question 3 (4 points) Talking about monetary policy, we covered a lot of ground. But we also touched on the present situation. The increase in housing prices and the Bank of Canada's resolve to reduce inflation. With the AE/Y , AD/AS and Money supply/money demand models. Can you show: i. The impact of the policy from increasing interest rates ii. Investors are inversely impacted by interest rates (the invest less) iii. Don't forget to show increase in price :)
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