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.

---

Definitions:

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose, often with the aim of minimizing waste.

Fatigue

A state of extreme tiredness resulting from mental or physical exertion or illness, affecting individuals' performance and wellbeing.

MDS

Multi-Dimensional Scaling, a statistical technique used for exploring similarities or differences in data, often applied in fields like psychology, marketing, and information science.

Talent

Refers to the natural abilities, skills, and expertise that individuals possess, which are valuable and necessary for organizational success and performance.