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:

Oligarchy

A form of government where power effectively rests with a small number of people, often distinguished by royalty, wealth, family ties, or military control.

Concentrated Power

A situation where a significant amount of authority or power is held by a small number of individuals or organizations.

Bureaucracies

Formal organizations characterized by a hierarchical structure, a clear division of labor, set rules and regulations, and impersonal relationships, aimed at achieving maximum efficiency.

HIV/AIDS Spread

The transmission of the Human Immunodeficiency Virus (HIV) leading to the disease AIDS, affecting the immune system and potentially resulting in life-threatening infections.