According to the open-economy macroeconomic model, if the Canadian government decreased the government budget deficit, both Canadian domestic investment and Canadian net capital outflow would fall.

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According to the open-economy macroeconomic model, a decrease in government budget deficit would lead to a decrease in domestic investment due to a decrease in government purchases, and a decrease in net capital outflow due to a decrease in interest rates that would reduce the incentive for capital outflow. Thus, both Canadian domestic investment and Canadian net capital outflow would fall.

According to the Open-Economy Macroeconomic Model, If the Canadian Government