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Macroeconomics (Economics 1202.1A)
Issued: November 7th, 2017
Due: November 21st, 2017 on BrightSpace – Assessments Dropbox Assignment Four
Answer each of the following questions in full sentences. Use a graph if it helps with your
1. Explain the two ways that the Bank of Canada could conduct Monetary Policy? Which way
did they choose and why?
2. What are “Open Market Operations” and why are they important?
3. Explain the Monetary Transmission Mechanism.
4. Why does the Bank of Canada target inflation?
5. What is “Core Inflation” and why is it important to Monetary Policy?
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