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<H1>Chapter 13 - Assignment 1: Canadian Monetary Policy</H1>
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Read the <a href="http://ftp.bank-banque-canada.ca/english/bmin.htm">extracts from the June 18, 1997 meeting of the Board of Directors of the Canadian national bank</a>.
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<LI>The Governor's remarks indicate that lower interest rates result in a higher level of real consumption expenditures. Is this correct? Why or why not? Why might the effect be larger for "big-ticket" items?
<LI>Why might a lower interest rate result in an increase in real investment spending?
<LI>Does it appear that the Canadian central bank should change the direction of its monetary policy? (Hint: Are the current outcomes consistent with their targets?)
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[ <a href="c13.htm" target="_top">Chapter 13</a>
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