The Bank of Canada slows the growth in the supply of money and credit. Interest rates will likely ______, which is an example of ______ policy.

Question

Quizplus · Accepted Answer

When the Bank of Canada slows the growth in the supply of money and credit, it is an example of monetary policy, as it directly affects the availability and cost of money and credit. The likely outcome of this policy is the rise in interest rates, as borrowing becomes more expensive and less attractive. Therefore, the correct answer is C - rise; monetary.

The Bank of Canada Slows the Growth in the Supply