Macroeconomics, 9/e

Campbell R. McConnell, University of Nebraska, Lincoln
Stanley L. Brue, Pacific Lutheran University
Thomas P. Barbiero, Ryerson University

The Bank of Canada and Monetary Policy

Chapter Objectives

In this chapter you will learn:

The main functions of the Bank of Canada.

How the Bank of Canada can expand or contract the money supply.

The components of money demand.

How the equilibrium interest rate is determined in the money market.

The mechanism by which the interest rate affects GDP.

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