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If the Bank of Canada Buys Government Securities in the Open

Question 55

Multiple Choice

If the Bank of Canada buys government securities in the open market,the supply curve of real money shifts


A) leftward and the overnight rate rises.
B) leftward and the overnight rate falls.
C) rightward and the overnight rate rises.
D) rightward and the overnight rate remains constant because the demand for money increases at the same time.
E) none of the above.

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