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Canada has the largest deficit with an inflation of 4.4% this year. Because of the deficit, the government usually borrows money or increases taxes. When
Canada has the largest deficit with an inflation of 4.4% this year. Because of the deficit, the government usually borrows money or increases taxes. When taxes cannot be increased and expenditures cannot be reduced, the government will print a lot of money to balance the budget.
Since the deficit has caused inflation, in addition to the deficit, there are also supply chain problems in Canada. How should the government respond? Increase or decrease expenses? Raise interest rates? Or use to shrink the money supply?
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