N Examity Proctor - Chrome mat- 1148728cmid-706999 examity Open + Questions Canada's deficit will be close to $400 billion by the end of the fiscal year. To help the economy recover once the pandemic begins to wane, the government is setting aside $100 billion for stimulus. In a long-awaited economic statement, tabled today, Finance Minister Chrystia Freeland said the government's immediate priority is to do "whatever it takes" to help Canadians and businesses stay safe and solvent. The Bank of Canada also kept its key interest rates low at 0.25 per cent. But the Bank of Canada also indicated that it the key interest rates will hold at this low level until economic slack is absorbed so that its two per cent inflation target is ustainably achieved. the meantime, because of the COVID-19 pandemic, many businesses are facing increasing costs when purchasing lies from manufacturers around the globe. ow would the $100 billion stimulus affects GDP? Based on what the businesses encountered in this scenerio, how would the economy's price level and affected? Explain all parts of the questions in your own words in terms of appropriate macroeconomic theories learned in this course. [2.5 marks and why is the Bank of Canada's concern if it keeps lowering the interest rates in the long run? Explain in you own words in terms of appropria theories learned in this course [2.5 marks]