All else being equal,if the Bank of Canada decreases the money supply,interest rates will _____ and the dollar will _____ against other currencies.

Question

Quizplus · Accepted Answer

When the Bank of Canada decreases the money supply, interest rates typically increase due to the reduced availability of money. Higher interest rates attract foreign investment, leading to an appreciation of the Canadian dollar against other currencies.

All Else Being Equal,if the Bank of Canada Decreases the Money