keep inflation on target and maintain full employment put inflation below

Keep inflation on target and maintain full employment

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keep inflation on target and maintain full employment; put inflation below target and increase unemployment Inflation rate targeting is a monetary policy strategy in which the central bank When inflation rate is high, the unemployment will increase price level will fall - Increase interest rate, decreases Aggreagate Demand Financing doesn’t directly effect Smaller.. Low interest rate decreases the interest rate on the government debt Move interest rate up, the budget deficit would increase… Rapid Appreciating dollar the budget deficit could either increase on decrease Recession – central increase quantity of money by more than increase in potentital gdp Monetary policy doesn’t respond to changes in candian exchange rate Bank rate is the interest rate that the Bank of Canada ______. The settlements balances rate is the interest rate that the Bank of Canada ______. A. charges big banks on loans; pays banks on their reserves at the Bank of Canada When the Bank of Canada lowers the overnight loans rate, it makes an open market purchase Other short-term interest rates and the exchange rate fall. The quantity of money and the supply of loanable funds increase.
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