Enjay943 Enjay943

05-06-2023
Law

contestada

(1)
Expansionary fiscal policy
Problem: Recession, slow growth
Expansionary fiscal
Higher domestic interest rate
Increased foreign demand for dollars
Dollar appreciates
Net exports decline (aggregate demand decreases,
partially offsetting the expansionary fiscal policy)
(2)
Contractionary fiscal policy
Problem: Inflation
Contractionary fiscal policy
Lower domestic interest rate
Decreased foreign demand for dollars
Dollar depreciates
Net exports increase (aggregate demand increases,
partially offsetting the contractionary fiscal
Q1) As represented in the table above, explain both Expansionary and Contractionary fiscal policies. Q2) What is Canada's Net Public Debt in 2021?

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