The Canadian Federal Government's System of "Equalization Payments

Multiple Choice

The Canadian federal government's system of "equalization payments"

A) are made out of the federal government's general revenues to provinces with below-average tax capacity.
B) are made by provinces with above-average tax capacity to the federal government.
C) are made to provinces with inadequate "tax room."
D) are made by richer provinces to poorer provinces in the form of no-interest loans.
E) were established in 1867 between the original provinces of Canada as a means of equalizing living standards across the country.