Study Economics in the News in the eText or click on the icon LOADING.... Then answer the following questions.     
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Part 1
Describe the features of the Bank of Canada's response to the pandemic.
The Bank of Canada _______.
A.
lowered the target overnight loans rate and increased its asset purchases
B.
increased notes in circulation and reserves by 240 percent
C.
set the settlement balances rate at a negative rate and increased bank reserves
D.
lowered the target overnight loans rate and increased its asset sales
Part 2
How would you expect the cut in the overnight loans rate to 0.25 percent to influence the market for reserves, the loanable funds market, and aggregate demand and aggregate supply?
The cut in the overnight loans rate to 0.25 percent _______.
A.
increases reserves, the equilibrium quantity of loanable funds, aggregate demand, and aggregate supply
B.
decreases reserves and the equilibrium quantity of loanable funds, increases aggregate supply, and has no effect on aggregate demand
C.
increases reserves and aggregate demand but has no effect on the equilibrium quantity of loanable funds or aggregate supply
D.
increases reserves, the equilibrium quantity of loanable funds, and aggregate demand, and has no effect on aggregate supply