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Question 13 (2 points) Which of the following is a statement that you AGREE with? Explain why. 1. To deal with inflation, the Bank of

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Question 13 (2 points) Which of the following is a statement that you AGREE with? Explain why. 1. To deal with inflation, the Bank of Canada would pursue an open market operation where it buys securities 2. An increase in the Bank of Canada's target for the overnight interest rate causes interest rates to fall, the Canadian dollar to depreciate which in turn causes a decrease in aggregate demand, causing the rate of inflation to fall. 3. A decrease in the Bank of Canada's target for the overnight interest rate causes interest rates to go down, the Canada dollar to depreciate, which in turn causes an increase in aggregate demand, causing the rate of inflation to rise. Paragraph BIUA +

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