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QUESTION

This year's budget is mostly in line with previous estimates from Finance Canada that, for the foreseeable future, the federal government will...

"This year's budget is mostly in line with previous estimates from Finance Canada that, for the foreseeable future, the federal government will be running a deficit." Globe and Mail, February 27, 2018

a) How does a government get funds to cover a budget deficit?

b) How will Canada's projected budget deficit of 2018 be influenced by the Banks of Canada's low interest rate policy?

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