What effect would a combination of an open market purchase by the Bank of Canada and an increase in the bank rate have on the money supply?

Question

Quizplus · Accepted Answer

An open market purchase by the Bank of Canada would increase the money supply, while an increase in the bank rate would decrease the money supply. The net effect on the money supply would depend on the magnitude of each action, so the overall effect is indeterminate.

What Effect Would a Combination of an Open Market Purchase