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In the last few years Canada has had the strongest growth in economy or the group of the seven richest nations. Lately the economy has slowed down because of the rise of the Canadian dollar. Most people think that it is good that the Canadian dollar is up but it actually isn't. The truth is the cost for exported goods goes up; therefore we loose business because countries that buy these exported goods from us will buy from cheaper places. We also loose a lot of Canadian tourism. We get tons of tourism from other countries because our dollar is so low compared to most and it is cheap to come here. The recent drop of the Canadian dollar has been to our advantage. Because of the fall of the dollar the bank of Canada can lower their interest rates. Since the banks can lower the interest rates it will make business want to spend more money because borrowing money is going to be cheap. A disadvantage of the interest rates in Canada dropping is that foreign investments in Canada will decrease. If interest rates are at percent rather than 4 percent foreign investors are not making as much money as they would be at a 4 percent interest rate; therefore the foreign investors will invest in countries with a higher interest rate. The mad cow disease scare has also been a huge downfall for Canadians. The biggest thing as Saskatchewan citizens is that elections are due both federally and provincially. This is good for us is because the politicians save up there money from the last four years they have been running so that they can spend a hole wack of cash the fifth year when theirs going to be an election so they can try and win votes. The unemployment rate is also doing fairly well it is at about 7.8 percent now but in June it was at 7.7 in may there was about 4000 jobs created but throughout the last year Canada has lost over 8000 factory workers.
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