To lower interest rates, the Bank of Canada can

raise the exchange rate.

raise the bank rate.

buy government securities.

increase the treasury bill rate.

decrease bank reserves.

A monetary authority that applies themoney targeting rulewould

make the quantity of money grow at a rate equal to the growth rate of potential GDP.

make the quantity of money grow at a rate equal to the growth rate of potential GDP minus 0.25 percent.

adjust the money supply to regions of the country according to economic circumstance.

set the money supply only in response to the current inflation rate.

adapt the money supply according to the goals for inflation, interest rates, and exchange rates.