The interest rate in the United States is 3%. If Canada would be a closer economy it's interest rate would be 2.4%. Consider and analyze the country Canada as a small open economy with perfect capital mobility. Use the macroeconomic model for a small open economy studied to analyze the impact of the following event on Canadian savings, investment, exchange rate and trade balance in the Canadian e economy: Event: Canadian federal , provincial and territorial governments eliminated the government budget deficits and introduced budget surpluses Also why is it important for Canadians to closely watch movements in government budget balances? Explain thoroughly with words and graphs