In an Open Market Operation Aimed at Increasing Expenditure, the Bank

question 97

Multiple Choice

In an open market operation aimed at increasing expenditure, the Bank of Canada

• A)sells government bonds, decreasing bank reserves, decreasing lending, decreasing the overnight rate.
• B)sells government bonds, decreasing bank reserves, decreasing lending, increasing the overnight rate.
• C)sells government bonds, decreasing bank reserves, increasing lending, increasing the overnight rate.
• D)buys government bonds, increasing bank reserves, increasing lending, decreasing the overnight rate.
• E)buys government bonds, increasing bank reserves, increasing lending, increasing the overnight rate.

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