The following excerpts are from the Bank of Canada, article 'Bank of Canada increases overnight rate target to 1 per cent', January 17, 2018. Recent [Canadian economic] data have been strong, inflation is close to target [3%], and the economy is operating ... at capacity. Growth is expected to remain above potential through the first quarter of 2018. Consumption and residential investment have been stronger than anticipated, reflecting strong employment growth. Business investment has been increasing at a solid pace, and investment intentions remain positive. Given the above information, will the Bank of Canada want to further expand the Canadian economy or begin a slight contraction of the economy? (Check mark the correct answer.) (1 mark) Expand _____ Contract _____ Assuming your previous answer is correct, we would expect that the Bank of Canada would achieve this result by _____________________ [buying / selling ] bonds so that the Chartered banks would make ____________________[more / fewer] loans, thus causing the money supply of the nation to ___________________ [ increase / decrease], and interest rates to _________________ [ increase / decrease]. (4marks) The change in interest rates would cause consumers and business investors to spend ____________ (more / less) and as a result, the Canadian economy would ________________ (expand / contract) and prices in the economy would ______________ (rise / fall). (3 marks) [Highlight the correct answer in brackets.]