Which of the following is correct? a. If the Bank of Canada purchases bonds in t

Question

Which of the following is correct? a. If the Bank of Canada purchases bonds in the open market, then the money supply shifts right. A change in the price level does not shift money supply. b. If the Bank of Canada sells bonds in the open market, then money supply shifts right. A change in the price level does not shift money supply. c. If the Bank of Canada purchases bonds, then the money supply shifts right. An increase in the price level shifts money supply right. d. If the Bank of Canada purchases bonds, then the money supply shifts right. A decrease in the price level shifts money supply right.

Explanation / Answer

We generally do not answer the questions of those who are having low rating. You are having a rating of "60%". Please rate all answers and improve your rating. Even if you find the answers are incorrect, first rate Lifesaver or helpful to the best answer and then rate other answers as not helpful. But do rate them for the good of both of us. Thanks!! Coming to the problem b. If the Bank of Canada sells bonds in the open market, then money supply shifts right. A change in the price level does not shift money supply.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.