Which of the Following Is True About the Home Buyers

question 4

Multiple Choice

Which of the following is true about the Home Buyers' Plan?

• A)It's a government program which enables first time home owners with less than five percent down payment to purchase a home using CMHC insurance.
• B)It's a government program exempting Canadian first time home buyers in certain provinces from land transfer tax.
• C)It's a government program allowing first time home buyers to withdraw $20000 from their RRSPs tax free as long as paid back within ten years.
• D)It's a government program allowing first time home buyers to withdraw $25000 from their RRSPs tax free as long as paid back within fifteen years.

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Definitions:

Tax Cuts

Reductions in the amount of taxes that individuals or corporations are required to pay.

Keynesian Approach

An economic theory stating that government intervention through fiscal and monetary policy is necessary to manage economic fluctuations.

President Reagan

Ronald Reagan, the 40th President of the United States, served from 1981 to 1989, known for his conservative policies and the economic doctrine referred to as "Reaganomics."

Classical Economists

A group of 18th- and 19th-century economists who believed in the theory that markets operate best without government interference, focusing on the importance of free markets for economic development.