When the Bank of Canada increases the money supply, people spend more because they now have more money.

Name: When the Bank of Canada increases the money supply, people spend more because they now have more money.
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Quizplus · Accepted Answer

Increasing the money supply typically lowers interest rates, making borrowing cheaper and encouraging spending and investment, but it doesn't directly give people more money to spend.

When the Bank of Canada Increases the Money Supply, People