Which Negative Economic Impact Is Most Blamed for Canada's Fiscal

question 29

Multiple Choice

Which negative economic impact is most blamed for Canada's fiscal crisis in the early 1990s?

• A)an accumulation of annual deficits,combined with a growing public debt
• B)an accumulation of budget surpluses,combined with rising inflation
• C)a growing demand for services,combined with a dwindling supply
• D)a drastic reduction in government revenues,combined with rising tax rates

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Definitions:

Future Value

The value of an investment at a specific future date, taking into account factors like interest rates and compound interest.

Deductibles

The amount a policyholder must pay out-of-pocket before an insurance company will cover the remaining costs of a claim.

Moral Hazard

A situation where one party is more likely to take risks because the negative consequences of the risk are borne by another party.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often providing a hedge against financial risks arising from healthcare costs.