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Other Fields Homework Help Economics Topic started by: Alena Grigore on Mar 1, 2021



Title: If the Bank of Canada buys bonds on the bond market, all of the following happen except
Post by: Alena Grigore on Mar 1, 2021
If the Bank of Canada buys bonds on the bond market, all of the following happen except
Question 12 options:

A)business investment increases.

B)the overnight rate rises.

C)the supply of money increases.

D) net exports increase.

E) bank reserves increase.


Title: Re: If the Bank of Canada buys bonds on the bond market, all of the following happen except
Post by: bio_man on Mar 1, 2021
If the Bank of Canada buys bonds in the open market, the present value of the bond will increase and the interest rate will increase. I believe this in turn expands the money supply, so maybe (C), what do you think?