What are the possible monetary policy instruments and which one does the Bank of Canada use? The possible monetary policy instruments are and the Bank of Canada uses O A. the monetary base, the exchange rate, and the ovemight interest rate; the exchange rate O B. foreign exchange reserves and the exchange rate; the exchange rate O C. the monetary base, the exchange rate, and the overnight interest rate; the overnight interest rate O D. the federal govemment budget balance and the real interest rate; the real interest rate
What are the possible monetary policy instruments and which one does the Bank of Canada use? The possible monetary policy instruments are and the Bank of Canada uses O A. the monetary base, the exchange rate, and the ovemight interest rate; the exchange rate O B. foreign exchange reserves and the exchange rate; the exchange rate O C. the monetary base, the exchange rate, and the overnight interest rate; the overnight interest rate O D. the federal govemment budget balance and the real interest rate; the real interest rate
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 8PA
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Transcribed Image Text:What are the possible monetary policy instruments and which one does the Bank of Canada use?
The possible monetary policy instruments are
and the Bank of Canada uses
O A. the monetary base, the exchange rate, and the ovemight interest rate; the exchange rate
O B. foreign exchange reserves and the exchange rate; the exchange rate
O C. the monetary base, the exchange rate, and the overnight interest rate; the overnight interest rate
O D. the federal govemment budget balance and the real interest rate; the real interest rate
How has the value of the overnight rate behaved since 1997?
The value of the overnight rate has
and since 2009 it has been
O A. fluctuated; around 4 perecent
O B. trended upward; historically high
O C. trended downward; historically low
O D. been constant; constant
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