When the Bank of Canada decreases the bank rate, banks will borrow more from the Bank of Canada. Which statement best describes the outcomes of this process?
A) Banks lend more to the public, and so the money supply will decrease.
B) Banks lend less to the public, and so the money supply will decrease.
C) Banks lend more to the public, and so the money supply will increase.
D) Banks lend less to the public, and so the money supply will increase.
Correct Answer:
Verified
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