Which of the Following Is One of the Reasons Why

question 122

Multiple Choice

Which of the following is one of the reasons why the Canadian government went from budget deficits to budget surpluses in the late 1990s?

• A)Declining GDP.
• B)Higher corporate tax rates.
• C)Increased program spending.
• D)Decreased transfer payments to the provinces for health and education.
• E)Elimination of the national debt has eliminated interest payments.

---

Definitions:

Interest Rates

It denotes the cost, specified as a percentage of the principal, imposed on borrowers by lenders for the privilege of using their assets.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.

Debentures

Long-term securities issued by a company that are not secured by physical assets or collateral but by the general credit of the issuer.

Specific Assets

Assets identified and designated for a particular purpose or project, often tied to securing a specific obligation.