Essay
As the Canadian economy approached the millennium, January 1, 2000, many people cautiously began to hold larger than normal quantities of currency as protection against a possible disruption of banking services that could result from computer glitches (the so-called Y2K bug).
a.How did this greater preference for currency affect the money supply?
b.How could the Bank of Canada offset such an increase in currency preferences?
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Correct Answer:
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a.The greater preference for currency ...
View Answer
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