Between 2017 and 2019, the central bank in Canada gradually increased its the policy rate.

(a) In general, who are affected by an increase in the policy rate by the central bank? Explain how.

(b) What is the main intention/goal behind such a policy move/action? Explain clearly.

(c) Can fiscal policy achieve the same goal as the goal the central bank wants to achieve by increasing its policy rate? If so, explain how.

(d) Would increasing the policy rate makes sense in our current economy that is suffering because of the coronavirus crisis? Explain.