Since the mid-1990s, Canadian governments have tried to eliminate budget deficits. What was expected to happen?
A) This would decrease national saving, appreciate the real exchange rate, and decrease net exports.
B) This would increase national saving, appreciate the real exchange rate, and increase net exports.
C) This would increase national saving, depreciate the real exchange rate, and increase net exports.
D) This would decrease national saving, depreciate the real exchange rate, and decrease net exports.
Correct Answer:
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