Which one of the following is true of the Canadian fiscal policy of the late 1990s?
A) Canada shifted its budget toward a deficit in the late 1990s and experienced strong growth in the years that followed.
B) Canada shifted its budget toward a surplus in the late 1990s and experienced strong growth in the years that followed.
C) Canada's fiscal policy was highly expansionary during the latter half of the 1990s and the inflation rate rose sharply in the years that followed.
D) Canada reduced government spending as a share of the economy,but the policy was soon reversed as the rate of unemployment rose to higher and higher levels.
Correct Answer:
Verified
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