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:

Raw Materials

Essential substances and components utilized in production processes for the creation of completed items.

Incurred

Refers to costs or expenses that have been acquired or accumulated as a result of undertaking specific activities or operations.

Underapplied

Refers to a situation where the allocated or applied overhead costs are less than the actual overhead costs incurred.

Overapplied

Refers to a situation where the allocated costs exceed the actual costs incurred, often seen in manufacturing and budgeting.