12. The following table presents data taken from Finance Canada's Economic and Fiscal Update, November 2003. It shows borrowing in the market for loanable funds by Canadian governments and Canadian businesses in fiscal years 1992-93 and 2001-02.

1992-93 2001-02 (billions of dollars)

Change Government

+$45.1

-$10.3

-$55.4 Business

+$22.0

+$59.1

+$37.1 Source: The Economic and Fiscal Update, http://www.fin.gc.ca/ec2003/ec03e.pdf, Department of Finance Canada, 2003. Reproduced with the permission of the Department of Finance, 2016.

In the earlier period, Canadian governments were running large deficits. As a result, they borrowed $45.1 billion in capital markets. In the later period, Canadian governments were realizing budget surpluses and as a result provided $10.3 billion in funds to capital markets. The table shows how the change in government borrowing enabled the private sector greater access to loanable funds. How do you think this change in government policy affected interest rates? How do you think this change affected the ability of Canadian businesses to expand and create new employment?