The Only Province Not Currently Collecting a Sales Tax Is

question 42

Multiple Choice

The only province not currently collecting a sales tax is Alberta. What is a likely result from the recently elected government's proposal to reduce income taxes and introduce a sales tax?

• A) The equilibrium interest rate and investment would both increase.
• B) The supply of loanable funds would shift left
• C) The standard of living would eventually rise.
• D) The equilibrium interest rate would decrease and investment would increase.

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Definitions:

Debit And Credit

Fundamental concepts in accounting that represent the increase or decrease in an account balance; debits increase asset or expense accounts, while credits increase liability, equity, or revenue accounts.

Chart Of Accounts

An organized list of all accounts in a company's financial system, which is used to classify transactions.

Financial Statement Order

The sequence in which the key financial documents are prepared, typically including the income statement, balance sheet, statement of cash flows, and statement of retained earnings.

Debits And Credits

Fundamental accounting concepts that are used in double-entry bookkeeping, where debits must equal credits in every transaction.