When the Bank of Canada decreases the overnight rate,banks are likely to _____ their lending and the money supply _____.

Name: When the Bank of Canada decreases the overnight rate,banks are likely to _____ their lending and the money supply _____.
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When the Bank of Canada decreases the overnight rate, it means it is cheaper for banks to borrow money. As a result, they are likely to increase their lending to customers. This increase in lending leads to an increase in the money supply in the economy.

When the Bank of Canada Decreases the Overnight Rate,banks Are