(Answered) In fiscal year 2009-10 the government of canada incurred a

Management Studies

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 happen to levels of foreign investment in Canada?

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