5. In fiscal year 2009-10, the Government of Canada incurred a budget deficit of $56 billion, an...

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5. In fiscal year 2009-10, the Government of Canada incurred a budget deficit of $56 billion, an increase of about $50 billion from the year before.

a. What effect should we expect this increase in the government's deficit to have had on Canada's net exports?

b. If large deficits were to persist for many years, what would we expect would happen to levels of foreign investment in Canada?

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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