a. How would the budget deficit change in 2018 and 2019 if the Bank of Canada moved
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a. How would the budget deficit change in 2018 and 2019 if the Bank of Canada moved interest rates up to 2 percent or higher?
b. How would the budget deficit change in 2018 and 2019 if the Bank of Canada’s monetary policy led to a rapid appreciation of the dollar?
A University of Ottawa Institute of Fiscal Studies and Democracy report says that rising interest rates will produce larger federal government deficits.
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