An increase in federal government budget deficits that raises Canadian interest rates relative to the rest of the world should

Name: An increase in federal government budget deficits that raises Canadian interest rates relative to the rest of the world should
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Question

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An increase in interest rates will make it more expensive for Canadians to borrow, reducing investment and consumption in the Canadian economy, and reducing net exports. A decrease in net exports will lead to a current account deficit.

An Increase in Federal Government Budget Deficits That Raises Canadian