A newspaper headline reads: "Bank of Canada Raises the overnight rate for third time this year." This headline indicates that the Bank of Canada is most likely trying to:

Question

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By raising the overnight rate, the Bank of Canada is making it more expensive for banks to borrow money, which in turn makes it more expensive for consumers to borrow money. This is done in an effort to reduce inflationary pressures in the economy and ensure that the economy does not overheat. This is important for maintaining economic stability in the long term.

A Newspaper Headline Reads: "Bank of Canada Raises the Overnight