Multiple Choice
Exhibit 14-2
-Refer to the graph in the exhibit.Which of the following CANNOT cause the supply of money to decrease from S to S*?
A) a decrease in the desired reserve ratio
B) the sale of Government of Canada Treasury securities by the Bank of Canada
C) a decrease in the bank rate
D) an increase in excess reserves in the banking system
Correct Answer:
Verified
Correct Answer:
Verified
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