According to the traditional view of government debt,if taxes are cut without a cut in government spending,then in Canada this situation will lead to ______ net indebtedness on the part of Canada to foreign countries and ______ net exports.

Question

Quizplus · Accepted Answer

Cutting taxes without reducing government spending increases the budget deficit, leading to more borrowing from foreign countries, which increases net indebtedness and reduces net exports.

According to the Traditional View of Government Debt,if Taxes Are