Until the Onset of the Most Recent Recession in 2009,Canadian

question 19

Multiple Choice

Until the onset of the most recent recession in 2009,Canadian governments (federal and provincial) had been running budget surpluses for about 10 years.Economic theory suggests that,other things being equal,these budget surpluses will lead to

• A)a rise in national saving,a fall in interest rates and a "crowding in" of investment and net exports.
• B)a fall in national saving,a rise in interest rates and a "crowding out" of investment and net exports.
• C)an appreciation of the domestic currency and a fall in Canada's net exports.
• D)a depreciation of the domestic currency and a fall in Canada's net exports.
• E)a rise in national saving,a rise in interest rates and a "crowding out" of investment and net exports.

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