Suppose the Bank of Canada announces its target for the overnight interest rate at 2.5 percent. In that case, the Bank of Canada is willing to lend to commercial banks at _ percent and is willing to pay percent on deposits it receives from commercial banks.
A) 2.25; 2.5
B) 2.5; 2.5
C) 2.5; 2.0
D) 2.75; 2.25
E) 3.5; 1.5
Correct Answer:
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