What is a monetary policy target? Why does the Bank of Canada use policy targets? Part 2 A monetary policy target used by the Bank of Canada is A. budget deficit. B. interest rate. C. unemployment rate. D. growth rate of GDP. Part 3 The Bank of Canada uses policy targets of interest rate and/or money supply because: A. it can affect the interest rate and the money supply directly and these in turn can affect unemployment, GDP growth, and the price level. B. it is difficult to set a target for the unemployment rate, which constantly fluctuates. C. the inflation rate is controlled by the Government of Canada. D. the target for the GDP growth rate is set by the Government of Canada