If the Bank of Canada wished to increase economic activity,it would be likely to:

Question

Quizplus · Accepted Answer

Decreasing the overnight rate makes it cheaper for banks to borrow money from the central bank, which in turn leads to lower lending rates for consumers and businesses. This encourages borrowing and spending, which can increase economic activity. Selling government securities, increasing the overnight rate, and increasing the prime rate would have the opposite effect by making borrowing more expensive and reducing spending.

If the Bank of Canada Wished to Increase Economic Activity,it