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Consider the market for settlement balances The Bank of Canada is concerned that inflation may drop below the lower bound of their mandate. After making

Consider the market for settlement balances The Bank of Canada is concerned that inflation may drop below the lower bound of their mandate. After making the appropriate change to their target rate, they will enforce this through: Question 5 options: Open market purchases to increase the supply of reserves. Open market sales to decrease the supply of reserves. Open market purchases to decrease the supply of reserves. Open market sales to increase the supply of reserves

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