To lower interest rates and accelerate the economy, the Bank of Canada buys bonds which increases the money supply.

Name: To lower interest rates and accelerate the economy, the Bank of Canada buys bonds which increases the money supply.
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Question

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When the Bank of Canada buys bonds, it injects money into the economy, which increases the money supply. This can lead to lower interest rates, which can encourage borrowing and spending, thereby stimulating economic growth.

To Lower Interest Rates and Accelerate the Economy, the Bank