The headline "The Bank of Canada Has Cut the Bank Rate" suggests that the Bank of Canada is trying to

Question

Quizplus · Accepted Answer

When the central bank (Bank of Canada) cuts its policy rate, it is reducing the cost of borrowing for consumers and businesses. This, in turn, can stimulate spending and investment, leading to an increase in aggregate demand. Therefore, the Bank of Canada's decision suggests that it is trying to stimulate aggregate demand.

The Headline "The Bank of Canada Has Cut the Bank