If there is an inflationary gap in the Canadian prairies and a recessionary gap in Ontario, what does the Bank of Canada do? O a. There are automatic stabilisers inherent in monetary policy that allow the policy to adjust to close the output gap. O b. The Bank of Canada consults with the commercial banks on the appropriate level of deposit creation for each region of the country. O c. The Bank of Canada responds to the average level of inflation in the country and implements a single monetary policy. O d. The Bank of Canada implements monetary policy in each region of Canada as required. O e. Each regional office of the Bank of Canada implements the appropriate monetary policy for that region.
If there is an inflationary gap in the Canadian prairies and a recessionary gap in Ontario, what does the Bank of Canada do? O a. There are automatic stabilisers inherent in monetary policy that allow the policy to adjust to close the output gap. O b. The Bank of Canada consults with the commercial banks on the appropriate level of deposit creation for each region of the country. O c. The Bank of Canada responds to the average level of inflation in the country and implements a single monetary policy. O d. The Bank of Canada implements monetary policy in each region of Canada as required. O e. Each regional office of the Bank of Canada implements the appropriate monetary policy for that region.
Chapter1: Making Economics Decisions
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Transcribed Image Text:If there is an inflationary gap in the Canadian prairies and a recessionary gap in Ontario,
what does the Bank of Canada do?
O a. There are automatic stabilisers inherent in monetary policy that allow the policy
to adjust to close the output gap.
O b. The Bank of Canada consults with the commercial banks on the appropriate
level of deposit creation for each region of the country.
O c. The Bank of Canada responds to the average level of inflation in the country and
implements a single monetary policy.
O d. The Bank of Canada implements monetary policy in each region of Canada as
required.
O e. Each regional office of the Bank of Canada implements the appropriate
monetary policy for that region.
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