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content area Part 1 If the Bank of Canada purchases $94 million worth of Canada bonds from the public, the money supply will decrease not

content area Part 1 If the Bank of Canada purchases $94 million worth of Canada bonds from the public, the money supply will decrease not change increase since sellers of these securities will withdraw funds from banks, deposit funds in banks, decrease consumption spending, increase consumption spending, which decreases increases does not change banks' reserves and causes banks to typically loan the same amount. less. more

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