If the Bank of Canada did not administer the operating band, what do you predict would happen

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If the Bank of Canada did not administer the operating band, what do you predict would happen to the money supply if the bank rate were several percentage points below the overnight rate?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

Question Posted: Nov 09, 2018 12:18 PM

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If the Bank of Canada did not administer the operating band, what do you predict would happen

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The monetary base and the money supply would increase indefinitely Ba...View the full answer

The Economics of Money Banking and Financial Markets

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