The Case for Austerity Is Different in Canada Than in Greece

question 150

Multiple Choice

The case for austerity is different in Canada than in Greece because

• A)Canada's government debt is low and there is little danger of the government defaulting on its debt.
• B)the Canadian banking sector was bailed out by the federal government in 2009.
• C)Canada's federal government hasn't stimulated the economy in 20 years.
• D)Canada's government is currently running a structural budget deficit.
• E)Canada has more trade links with the rest of the world.

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested in the business.

Restricted

Restricted typically refers to assets or securities that are not freely tradable or accessible due to regulations or specific conditions.

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings in cash.

Corporation Liability

Legal and financial obligations a corporation owes to others, which can involve debts, lawsuits, or other claims against the business.