If the Bank of Canada pushes interest rates up, the growth rate in the money supply and inflationary pressures increase.

Question

Quizplus · Accepted Answer

If the Bank of Canada pushes interest rates up, it usually reduces the growth rate in the money supply and helps to reduce inflationary pressures. This is because higher interest rates encourage savings and discourage borrowing, which reduces the amount of money available for spending and lending.

If the Bank of Canada Pushes Interest Rates Up, the Growth