Suppose the Bank of Canada increases its policy rate. Part 2 a. What type of policy is this? A. Expansionary monetary policy B. Expansionary fiscal policy C. Contractionary monetary policy D. Contractionary fiscal policy E. None of the above Part 3 b. Investment will increase not change decrease . Part 4 c. Aggregate demand will not change decrease increase . Part 5 d. GDP will decrease not change increase and inflation will increase decrease not change