The 2008-2009 Global Recession Had an Effect on Canadian Federal

question 89

Multiple Choice

The 2008-2009 global recession had an effect on Canadian federal and provincial budgets.In general,government debt-to-GDP ratios rose in Canada because of

• A)contractionary monetary policy and expansionary fiscal policy.
• B)an increased burden of debt-service payments due to the necessary reduction in the target overnight interest rate by the central bank.
• C)the decline in net tax revenues due to the recession,as well an expansionary fiscal policy.
• D)the necessity to balance the primary budget at the same time that the interest rate on government debt was rising.
• E)the necessity to balance the cyclically adjusted budget at the same time that the interest rate on government debt was rising.

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Definitions:

Primary Business

The main activity or category of activities a company engages in to generate the bulk of its revenue.

Operating Activities

Activities that constitute the primary or main activities of a company, such as production, distribution, marketing, and sale of goods or services.

Journal

In accounting, a record where all financial transactions are initially noted before being entered into the company's general ledger.

Reports Center

A dedicated area within a software application or platform where users can create, manage, and view various reports related to their data.