Question
What is theBank of Canada's policy on inflation, and how does ithelp to stabilize the economy? (Pls choose the most correct responses). * 10 points
What is theBank of Canada's policy on inflation, and how does ithelp to stabilize the economy? (Pls choose the most correct responses). *
10 points
If inflation is below target, the Bank may lower the policy rate to encourage financial institutions to, in turn, lower interest rates on their loans and mortgages and stimulate economic activity. In other words, the Bank is equally concerned about inflation rising above or falling below the target.
The BOC's policy on inflation is to lower policy rates.
The bank, also uses the lowered rates to leverage other financial institutions to lower their rates (on lines of credit, and loans, for example) in order to stimulate the economy.
The BOC prints more money.
Both A and B
Both C and A
Options B and C
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