If the Bank of Canada sells bonds,what will the short-run impact of this policy tend to include?

Question

Quizplus · Accepted Answer

When the Bank of Canada sells bonds, it reduces the money supply in the economy, which tends to increase real interest rates in the short run. This is because with a lower amount of money available, lenders can charge higher interest rates to borrowers. It is also likely to lead to a reduction in inflationary pressure and potentially a decrease in real output and an increase in unemployment, neither of which are listed as choices.

If the Bank of Canada Sells Bonds,what Will the Short-Run