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Answer to Question #104445 in Macroeconomics for Reyderlyn Evangelista

Question #104445
Describe the two key tools of monetary policy, and describe how they would be used by the Bank of Canada to implement a contractionary monetary policy
1
Expert's answer
2020-03-09T10:06:48-0400

- The Bank of Canada may increase the Central Bank's discount rate in order to increase the cost of loans for business and the public.

- The Bank of Canada may sell government securities, this will lead to a reduction in the money supply in the country.


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