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To Increase Aggregate Demand, the Bank of Canada

Question 54

Multiple Choice

To increase aggregate demand, the Bank of Canada


A) sells bonds, decreasing chartered bank reserves, decreasing lending, and lowering the overnight rate.
B) sells bonds, decreasing chartered bank reserves, decreasing lending, and raising the overnight rate.
C) sells bonds, decreasing chartered bank reserves, increasing lending, and raising the overnight rate.
D) buys bonds, increasing chartered bank reserves, increasing lending, and lowering the overnight rate.
E) buys bonds, increasing chartered bank reserves, increasing lending, and raising the overnight rate.

Correct Answer:

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