A lesson the U.S.might learn from the Canadian experience of the late 1990s is that
A) it is possible to reduce government spending and the results can be positive.
B) reductions in government spending when an economy is sluggish will lead to a disastrous outcome.
C) budget deficits stimulate aggregate demand and reduce unemployment just as the Keynesian model implies.
D) a country can continue to expand its debt as a share of the economy without experiencing higher interest rates.
Correct Answer:
Verified
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