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2. Consider the Bank of Canada's target for the overnight rate. Explain your answers. {a} Why is it unliker for the overnight rate to fall
2. Consider the Bank of Canada's target for the overnight rate. Explain your answers. {a} Why is it unliker for the overnight rate to fall outside of the Bank of Canada's operating hand? {10%) {b} If the overnight rate is too high, then what can the Bank of Canada do to reduce it? (5%) {o} If the overnight rate is too low, then what can the Bank of Canada do to increase it? (5%)
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