Economics Analysis

PLEASE USE A STANDARD FONT SUCH AS HELVETICA OR HELVETICA NEUE IN 16 POINT TYPE. PLEASE DO NOT USE A SMALLER FONT AS THIS IS DIFFICULT TO READ ON THE SCREEN. THE ANSWER TO THE QUESTION MUST BE BETWEEN 800 AND 1,000 WORDS. PLEASE SHARE YOUR WORD COUNT AFTER EACH QUESTION. THE WORD COUNT DOES NOT INCLUDE ANY REFERENCES, TABLES, OR CHARTS YOU MAY CHOOSE TO INCLUDE. IMPORTANT NOTE: There is no “right” or “wrong” answer to a question. Your answers will be judged based on the quality of your analysis and reasoning, not whether you “agree” or “disagree” with the propositions in the questions. A high quality answer will focus on concepts, arguments, and evidence (whether qualitative, quantitative, or both), and not on merely stating opinions that fail to be backed up by analysis. 1) With ultra-low interest rates, countries such as Canada are building up large debt to GDP ratios. Finance Minister Chrystia Freeland has said recently large debts should not be a worry because interest rates are so low. Do you agree or disagree? Discuss critically.

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