Countries experience a “credit crunch” when banks reduce lending due to a decline in the dollar value of their reserves.
Identify two different techniques the Bank of Canada can use to reverse a credit crunch in Canada.
what subsequent action by the banks might frustate the central bank's objective to avoid the credit crunch?

Answer rating: 100% (QA)

While the statement about credit crunches being solely caused by declining dollar value of reserves is partially trueits crucial to understand that se... View the full answer