Chapter 13: Monetary policy Flashcards
1
Q
What is Bank Rate
A
The rate at which banks have to pay for loans from the bank of Canada
2
Q
What is the prime rate
A
The lowest possible interest rate given by deposit takers in their best corporate customers
3
Q
What is the relationship between unemployment and inflation
A
Inverse relationship
4
Q
Demand Pull inflation
A
Inflation that occurs as aggregate demand brings up prices
