If the bank of Canada took some of the money out of the economy,which of the following may occur?

Name: If the bank of Canada took some of the money out of the economy,which of the following may occur?
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Question

Quizplus · Accepted Answer

When the central bank takes money out of the economy, there is a decrease in the money supply, which will lead to a decrease in demand for goods and services. This decrease in demand can lead to a decrease in prices, which is deflation.

If the Bank of Canada Took Some of the Money