If you hear in the news that the Bank of Canada conducted open-market purchases of government bonds,then you should expect ______ to increase.

Question

Quizplus · Accepted Answer

When the Bank of Canada conducts open-market purchases of government bonds, it injects money into the economy, increasing the supply of money. This is likely to lead to an increase in the money supply. Options A, B, and D are not directly affected by open-market purchases of government bonds.

If You Hear in the News That the Bank of Canada