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-(Figure: Changes in the Money Supply)Refer to Figure: Changes in the Money Supply.If the Bank of Canada has a policy to increase the supply of money,hence to lower the interest rate from 6% to 4%,it is accomplished by an action that ________ Treasury bills.

Question

Use the following to answer questions: 
-(Figure: Changes in the Money Supply)Refer to Figure: Changes in the Money Supply.If the Bank of Canada has a policy to increase the supply of money,hence to lower the interest rate from 6% to 4%,it is accomplished by an action that ________ Treasury bills.

Quizplus · Accepted Answer

Increasing the demand for Treasury bills raises their price, which in turn lowers the interest rate, aligning with the Bank of Canada's policy to increase the money supply and reduce interest rates.

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