If the actual overnight interest rate is 3.5 percent and the Bank of Canada raises its target for the overnight rate to 4 percent, and longer-term interest rates in the market rise as a result, then the demand for loans from commercial banks the commercial banks government securities the Bank of Canada and the money supply O a. Falls; sell; to; falls. O b. Rises; buy; from; falls. O c. Rises; buy; from; rises. O d. Rises; sell; to; rises. O e. Falls; buy; from; falls.
If the actual overnight interest rate is 3.5 percent and the Bank of Canada raises its target for the overnight rate to 4 percent, and longer-term interest rates in the market rise as a result, then the demand for loans from commercial banks the commercial banks government securities the Bank of Canada and the money supply O a. Falls; sell; to; falls. O b. Rises; buy; from; falls. O c. Rises; buy; from; rises. O d. Rises; sell; to; rises. O e. Falls; buy; from; falls.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![If the actual overnight interest rate is 3.5 percent and the Bank of Canada raises its target for
the overnight rate to 4 percent, and longer-term interest rates in the market rise as a result,
then the demand for loans from commercial banks
the commercial banks
government securities
the Bank of Canada and the money supply
O a.
Falls; sell; to; falls.
O b. Rises; buy; from; falls.
О с.
Rises; buy; from; rises.
O d. Rises; sell; to; rises.
Ое.
O e. Falls; buy; from; falls.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4e2b115-8705-48f7-af04-59505e83ab72%2Ffdfc3d5a-8c52-4fa8-934d-765ad9b46d7e%2Ftqemmbp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the actual overnight interest rate is 3.5 percent and the Bank of Canada raises its target for
the overnight rate to 4 percent, and longer-term interest rates in the market rise as a result,
then the demand for loans from commercial banks
the commercial banks
government securities
the Bank of Canada and the money supply
O a.
Falls; sell; to; falls.
O b. Rises; buy; from; falls.
О с.
Rises; buy; from; rises.
O d. Rises; sell; to; rises.
Ое.
O e. Falls; buy; from; falls.
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