The Front-Page Headline of Your Local Newspaper States That the Bank

Multiple Choice

The front-page headline of your local newspaper states that the Bank of Canada is becoming increasingly worried about the rate of inflation and wants to slow the economy.Which of the following policies is the Bank of Canada most likely to pursue?

A) Increase taxes.
B) Devalue the dollar on international currency exchanges.
C) Decrease interest rates.
D) Restrict the money supply and drive up interest rates.