Multiple Choice
When the Bank of Canada sells bonds the
A) increased supply of bonds lowers bond prices and lowers interest rates.
B) increased supply of bonds lowers bonds prices and raises interest rates.
C) money supply increases.
D) increased demand for bonds raises bond prices and lowers interest rates.
E) increased demand for bonds raises bond prices and raises interest rates.
Correct Answer:

Verified
Correct Answer:
Verified
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