If the Bank of Canada buys government securities in the open market, the supply curve of real money
A) shifts leftward and the overnight loans rate rises.
B) shifts leftward and the overnight loans rate falls.
C) shifts rightward and the overnight loans rate rises.
D) shifts rightward and the overnight loans rate remains constant because the demand for money increases at the same time.
E) shifts rightward and the overnight loans rate falls
Correct Answer:
Verified
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