Consider the government's debt-to-GDP ratio.A significant reason for a government to maintain a low debt-to-GDP ratio is so that
A) the real interest rate remains high,which leads to increased investment.
B) the Canadian dollar will appreciate and net exports will increase.
C) the government has the flexibility to use expansionary fiscal policy if the economy enters a recession.
D) the Bank of Canada has the flexibility to use contractionary policy.
E) there is no "crowding in" of investment or net exports.
Correct Answer:
Verified
Q106: An annually balanced government budget is a
Q107: In the long run,the government budget will
Q108: If the government were able to operate
Q109: An annually balanced government budget would tend
Q110: There is a long-term burden of government
Q112: The concept of capital budgeting refers to
Q113: The diagram below is for a closed
Q114: In general,the government will have _ flexibility
Q115: The Canadian tax and transfer system acts
Q116: The policy objective of an annually balanced
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents