Solution-Name the policy the boc would use

Name the policy the boc would use

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Reference no: EM133128193

Now that the population is largely vaccinated and Covid number are falling the economy is resuming to a more normal environment. We have also learned that some inflation is present in the economy. Suppose that inflation is approaching 5 percent. Explain words the kind of policy the Bank of Canada would use in such an inflationary environment. Specifically:

Name the policy the BoC would use
Why does the BoC care about inflation? Why might it be a problem?
What is the objective that the BoC is trying to achieve by using the policy you indicated in Part A
Carefully describe two specific tools that the Bank of Canada would use in the policy you stated above.

Reference no: EM133128193

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Name the policy the boc would use

Reference no: EM133128193

Reference no: EM133128193

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