http://www.edmontonjournal.com/business/fp/Pressure+mounts+feds+spend/1347630/story.html
Pressure mounts on feds to spend

Summary
This article talks about how Canada has finally entered a recession after the fourth quarter. The Bank of Canada has been told to lower the interest rates, so that more money will be going out into the economy. This article also mentions that in the fourth quarter GDP dropped in capital investments, personal expenditures, home sales & prices, and exports till the sixth quarter. It also mentions how if Canada contracted, then all the other countries contracted as well. In US and Europe they contracted twice as quickly and in Japan four times as quickly. It also mentions the percentages of interest rates The Bank of Canada is cutting down to a really low amount.

Connections
In this chapter we learned about GDP and aggregate demand. In the article it talks about how the government urges The Bank of Canada to reduce tax rates so that more money will be put out in the economy hoping to get out of the recession Canada is in at the moment. If interest rate goes down people would be spending more, which would then increase demand of goods. If demands of goods are high the export and import will increase. This will cause the GDP to increase in the next quarter. If GDP slowly increases, eventually Canada will get out of this recession.

Personal Reflection
I think this is a good idea that more money is being pumped into the economy. With the help of low interest rates, it will interest people to start spending more. This will eventually lead to people investing again in houses, new goods, cars or any other expensive goods. Once people are starting to invest in them it means there is more money being put into the economy. If low interests gradually continue to lower, people will think that it is alright to start spending money on not only needs, but wants as well. The idea of having more money being pumped into the economy is definitely a good idea; I don’t think there are any flaws to it.