1. If the Bank of Canada lowers the Bank Rate will AD shift to the right or the left? If the Bank of Canada raises the Bank Rate will AD shift to the right or left?
2. What is quantitative easing (QE)? How can the Bank of Canada (BofC) decrease interest rates and increase the Money Supply using Open Market Operations (OMO)? Will the AD curve shift to the right or to the left? What are the other two reasons why interest rates decrease during this procedure?

Answer rating: 100% (QA)

When the Bank of Canada lowers the Bank Rate it generally aims to stimulate economic activity Heres ... View the full answer