When the Bank of Canada buys a Canadian government bond,what impact does this have on the volume of loans issued by the banking system and investment?
A) The volume of loans issued by the banking system increases and investment will tend to decrease.
B) The volume of loans issued by the banking system increases and investment will tend to increase.
C) The volume of loans issued by the banking system decreases and investment will tend to increase.
D) The volume of loans issued by the banking system decreases and investment will tend to decrease.
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