Interest rates were low in Canada in 2003 because of:

Question

Quizplus · Accepted Answer

The low interest rates in Canada in 2003 were primarily due to two factors - the inflow of capital into Canada and the monetary policy of the Bank of Canada. The capital inflows were partly driven by the depreciation of the Canadian dollar and the perception of the Canadian economy as being stable and attractive for investment. The Bank of Canada also implemented expansionary monetary policy to stimulate the economy, which led to lower interest rates. A decrease in money supply, capital outflows, or increases in tax rates would have the opposite effect, leading to higher interest rates.

Interest Rates Were Low in Canada in 2003 Because Of