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When the Bank of Canada conducts an open market operation in which it purchases government bonds, this a) raises banks' reserves, which thereby raises the

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When the Bank of Canada conducts an open market operation in which it purchases government bonds, this a) raises banks' reserves, which thereby raises the money supply. b) raises banks' reserves, which thereby lowers the money supply. c) has no effect on either banks' reserves or the money supply. d lowers banks' reserves, which thereby raises the money supply. causes none of the above

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