Critics of the government's fiscal policies have argued that government deficits
A) prevent capital from flowing into Canada.
B) are linked to the decline in productivity growth in Canada.
C) caused the level of unemployment in Canada to increase during the 1980s.
D) have directly contributed to a decline in the level of demand in the Canadian economy.

Question

Quizplus · Accepted Answer

Critics argue that government deficits can lead to higher interest rates, which may crowd out private investment and reduce productivity growth.

Critics of the Government's Fiscal Policies Have Argued That Government