An important way in which the Bank of Canada decreases the money supply is by selling bonds
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An important way in which the Bank of Canada decreases the money supply is by selling bonds to the public. Using a supply and demand analysis for bonds, show what effect this action has on interest rates. Is your answer consistent with what you would expect to find with the liquidity preference framework?
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Mehwish Aziz
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Related Book For 
The Economics Of Money Banking And Financial Markets
ISBN: 978-0134376936
6th Canadian Edition
Authors: Frederic S Mishkin ,Apostolos Serletis
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