(b) When the Bank of Canada lends and borrows in the overnight loans market, it affects the availability of reserves, ... (d) The supply of money can be determined by the Bank of Canada, and does not vary with the interest rate. ... These transactions will decrease the prices of existing bonds and increase the interest rate.
|Title||:||Study Guide for Use with Macroeconomics, Ninth Canadian Edition|
|Author||:||Andersen, Torben, Robert C. Bingham, William B. Walstad, Campbell R. McConnell|
|Publisher||:||McGraw-Hill Ryerson - 2002|