As a result of expansionary monetary policy,lower Canadian interest rates will result in a(n)_____ in the demand for dollars and a(n)_____ in the supply of dollars.

Question

Quizplus · Accepted Answer

Expansionary monetary policy lowers interest rates, making it cheaper to borrow dollars. This will increase the demand for dollars. Additionally, lower interest rates will make it less attractive to hold dollars, leading to a decrease in the supply of dollars.

As a Result of Expansionary Monetary Policy,lower Canadian Interest Rates