OF Monetary Versus fiscal policies imply that the Bank of Canada will be looking forward And trying to determine the movement of interest rates . Inflation And exchange rates in order to maintain economic stability within the country . What will we expect it the Bank of Canada increases the amount of Lures in it's reserves ! A ; Exchange rates will decrease for the Canadian dollars Versus the EURO [ ] Exchange rates will increase for the Canadian dollars Versus the Euro and the interest Tales will start to increase there fore increasing inflation in the Longer Term* CI Exchange rates will decrease for the Canadian dollars versus the Euro and the interest Tales will Start to Increase therefore decreasing inflation in the longEr TRITT [ ] Exchange rates will increase for the Canadian dollars Versus the Euro