Which of the Following Is an Example of Canada's Horizontal

question 24

Multiple Choice

Which of the following is an example of Canada's horizontal fiscal imbalance?

• A) provincial governments in the West raise more revenue than those in the East
• B) provinces with stronger oil and gas industries tend to have more lavish social programs
• C) provincial governments run larger budget deficits than the federal government
• D) provincial governments run smaller budget deficits than the federal government