It would remove money from the overall money supply making each dollar worth more per unit.
Money is subject to supply and demand, if demand is high and supply is low, the market value of each dollar goes up; If demand is high, people are willing to pay more.
Right now the supply of all CAD in our economy is higher than demand and so the dollar’s value is lowered.
We can’t fully control demand, but we can affect supply.
It would remove money from the overall money supply making each dollar worth more per unit.
Money is subject to supply and demand, if demand is high and supply is low, the market value of each dollar goes up; If demand is high, people are willing to pay more.
Right now the supply of all CAD in our economy is higher than demand and so the dollar’s value is lowered.
We can’t fully control demand, but we can affect supply.