An Increase in the Public Debt Will

question 61

Multiple Choice

An increase in the public debt will:

• A)increase incentives to work and bear risk.
• B)probably increase the inequality in the distribution of income.
• C)decrease the Canadian debt held by citizens and institutions in foreign nations.
• D)decrease the potential for higher taxation in Canada

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Definitions:

Free Trade

An economic policy allowing imports and exports to occur without government intervention such as tariffs, quotas, or other restrictions.

Sugar

A sweet-flavored substance sourced primarily from sugarcane and sugar beets, used widely as a sweetener in food and beverages.

Government Interference

Actions taken by the government to influence the economy or specific industries, which can include regulations, taxes, or subsidies.

Country

A distinct territorial body or political entity recognized as an independent nation.