Question
(1) Expansionary fiscal policy (2) Contractionary fiscal policy Problem: Recession, slow growth Problem: Inflation Expansionary fiscal policy Contractionary fiscal policy Higher domestic interest rate Lower
(1) Expansionary fiscal policy | (2) Contractionary fiscal policy |
Problem: Recession, slow growth | Problem: Inflation |
Expansionary fiscal policy | Contractionary fiscal policy |
Higher domestic interest rate | Lower domestic interest rate |
Increased foreign demand for dollars | Decreased foreign demand for dollars |
Dollar appreciates | Dollar depreciates |
Net exports decline (aggregate demand decreases, partially offsetting the expansionary fiscal policy) | Net exports increase (aggregate demand increases, partially offsetting the contractionary fiscal policy) |
Q1) As represented in the table above, explain both Expansionary and Contractionary fiscal policies.
Q2) What is Canada's Net Public Debt in 2021?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started