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If the Bank of Canada buys bonds on the bond market, all of the following happen except
Alena Grigore
Alena Grigore
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2 years ago
2 years ago
If the Bank of Canada buys bonds on the bond market, all of the following happen except
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.
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bio_man
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2 years ago
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?
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