Canada's Current Account Has Recently Been Negative

question 74

Multiple Choice

Canada's current account has recently been negative.This means that

• A)investment is greater than saving in Canada.
• B)saving is greater than investment in Canada.
• C)Canadian trade partners also have a current account deficit.
• D)the interest rate is higher in Canada compared to the United States.

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Definitions:

Inflationary Expectations

The anticipation of future inflation rates, influencing economic decisions and behavior.

Discretionary Policy

Economic policies based on ad hoc decisions by the government or monetary authorities to influence the economy, such as changes in spending or taxation.

Inflationary Expectations

The anticipation by consumers and businesses of future inflation, which can influence economic behavior such as spending, saving, and investment.

Potential GDP

The maximum output an economy can produce without triggering inflation, if all resources are fully employed.