The Bank of Canada has recently increased the interest rate, and is expected to deliver further increases in the coming months. The goal of this exercise is to analyze the consequences that this policy could have in isolation on Canada. (a) Explain in words how this policy can be interpreted in terms of the IS-LM-BoP model. In other words, explain the type of shock that determines an increase in the Canadian interest rate, and how this relates to the market of bonds. (maximum 8 lines).