Canadians Have Loaded Up on Debt to Historic Levels; Per

question 68

Multiple Choice

Canadians have loaded up on debt to historic levels; per capita debt is over 165 percent of disposable income, mirroring that of the United States prior to the subprime financial crisis.The primary cause for this is

• A)the historically low interest rates the Bank of Canada has maintained to speed up recovery following the "Great Recession."
• B)the reduced regulations around borrowing in Canada.
• C)all-time high levels of disposable income.
• D)the availability of government securities, like Canada Savings Bonds.
• E)falling incomes of the middle class.

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Definitions:

Marginal Revenue

The gain in revenue from disposing of one additional unit of a good or service.

Price Elasticity

An indicator of the responsiveness of the quantity of a product demanded to its price change, represented in terms of percentage variation.

Demand Curve

An illustration depicting the correlation between a product's price and the level of demand from buyers, often characterized by a descending trajectory.

MR

Marginal Revenue, which is the increase in revenue resulting from the sale of one additional unit of a product.