Suppose That the Bank of Canada Has Set a Target

question 289

Multiple Choice

Suppose that the Bank of Canada has set a target for the overnight rate.If initially the equilibrium interest rate happens to be higher than the target interest rate,then the Bank of Canada should _____ Treasury bills in the open market,_____ the money supply,shift the supply of money curve to the _____,and _____ the interest rate to the target rate.

• A) sell;decrease;left;raise
• B) purchase;decrease;left;lower
• C) purchase;increase;right;lower
• D) sell;increase;left;raise

---

Definitions:

Attachment

The emotional bond that develops between a child and a caregiver, crucial for the child's social, emotional, and cognitive development.

Day-Care Center

A facility that provides supervision and care for infants and young children during the daytime, especially to support working parents.

Securely Attached

A term describing individuals, especially children, who have formed healthy emotional bonds and a sense of security with their caregivers.

Resumed Playing

The act of restarting a game or activity after having paused or stopped.