Which of the Following Would Occur If the Federal Government

question 99

Multiple Choice

Which of the following would occur if the federal government of Canada cut all income taxes to zero and increased the GST (the federal consumption tax) to make up for the lost revenue?

• A)Consumption would increase.
• B)The supply of loanable funds would decrease.
• C)Saving would increase.
• D)Tax revenues would rise.
• E)Demand for loanable funds would fall.

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Definitions:

Intellectual Capital

The intangible value of an organization's knowledge, intellectual property, and employee expertise.

Open Systems

A concept in organizational theory and systems theory that views organizations as entities that interact with their environment, adapting and evolving as a result.

Contingency

The possibility that future events may occur, often dependent on certain conditions or situations, which can influence planning and decision-making.

Open Systems

An approach that views organizations as entities that interact with their environment, adapting and changing in response to external factors.