The Bank of Canada reduces the amount of money banks can lend. As a result, interest rates will ______ and economic growth will ______.

Name: The Bank of Canada reduces the amount of money banks can lend. As a result, interest rates will ______ and economic growth will ______.
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When the Bank of Canada reduces the amount of money banks can lend, it decreases the money supply, leading to higher interest rates. Higher interest rates typically slow down economic growth.

The Bank of Canada Reduces the Amount of Money Banks