If the Bank of Canada Pushes Interest Rates Lower, Policymakers

Multiple Choice

If the Bank of Canada pushes interest rates lower, policymakers at other nations' central banks will most likely ______.

A) increase their rates
B) follow suit, and drop their rates as well
C) do nothing; the Fed's actions have no influence on other countries central banks
D) keep their rates the same because a drop in U.S. rates will help their economy