The Bank of Canada is responsible for maintaining the value of the Canadian dollar, and...
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Finance
The Bank of Canada is responsible for maintaining the value of the Canadian dollar, and for encouraging sustainable economic growth, meaning reasonable growth without unreasonable inflation. One method it has to achieve these goals is through monetary policy. Which of the following BEST describes the Bank of Canada's main tool for monetary policy?
changes to taxation levels
government spending to increase the monetary supply
changes to the target for the overnight rate
drawdowns to reduce the monetary supply
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