The Bank of Canada plays a larger role than Parliament and the Prime Minister in stabilizing the economy because
A. the Bank of Canada has more authority than parliament.
B. changes in interest rates have a considerably larger effect on the economy than changes in government purchases or taxes.
C. changes in interest rates have their full effect on the economy in a short period of time, whereas changes in government spending and taxes have their full effect over a long period of time.
D. the Bank of Canada can immediately recognize when real GDP is below or above potential GDP.
E. the Bank of Canada can more quickly change monetary policy than the Parliament can change fiscal policy.
