3. Read this article (https://www.bankofcanada.ca/2020/08/understanding-inflation-targeting/) about Understanding inflation targeting and answer the following questions: (20 points)...

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3. Read this article (https://www.bankofcanada.ca/2020/08/understanding-inflation-targeting/) about Understanding inflation targeting and answer the following questions: (20 points) a. Why does Bank of Canada have a target for inflation? b. When does inflation deviate from the target? And how does central bank respond when inflation deviate from the target? 4. What is the difference between fiscal and monetary policy? (15 points) 5. When the government spends more than it takes in taxes it must borrow money to finance its expenditure. How does expansionary fiscal policy affect government's debt? (10 points) 3. Read this article (https://www.bankofcanada.ca/2020/08/understanding-inflation-targeting/) about Understanding inflation targeting and answer the following questions: (20 points) a. Why does Bank of Canada have a target for inflation? b. When does inflation deviate from the target? And how does central bank respond when inflation deviate from the target? 4. What is the difference between fiscal and monetary policy? (15 points) 5. When the government spends more than it takes in taxes it must borrow money to finance its expenditure. How does expansionary fiscal policy affect government's debt? (10 points)

Answer rating: 100% (QA)

3 a The Bank of Canada has a target for inflation because a low stable and predictable rate of inflation is good for the economy According to the arti... View the full answer