The Bank of Canada can implement both expansionary and restrictive monetary policies.

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The Bank of Canada has the power to implement both expansionary (stimulating) and restrictive (reducing) monetary policies to influence economic variables such as inflation, employment, and growth. Expansionary policies include lowering interest rates and increasing the money supply, while restrictive policies involve increasing interest rates and reducing the money supply.

The Bank of Canada Can Implement Both Expansionary and Restrictive