Multiple Choice
The only province not currently collecting a sales tax is Alberta. What is a likely result from the recently elected government's proposal to reduce income taxes and introduce a sales tax?
A) The equilibrium interest rate and investment would both increase.
B) The supply of loanable funds would shift left
C) The standard of living would eventually rise.
D) The equilibrium interest rate would decrease and investment would increase.
Correct Answer:
Verified
Correct Answer:
Verified
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