Canadian real GDP unexpectedly accelerated to a 4.5 percent pace in the second quarter of 2017. This faster-than-expected growth was the fastest among Group of Seven countries. It was led by the biggest rise in household spending since before the 2008–2009 global recession. How would an unexpected increase in the economic growth rate influence federal government outlays? Federal government outlays would ______ because ______ . A. decrease; government expenditure on goods and services would fall B. decrease; transfer payments such as unemployment benefits would fall C. increase; debt interest would increase D. not change; the economic growth rate doesn't influence federal government outlays How would an unexpected increase in the economic growth rate influence federal government revenues? Federal government revenues would ______ because ______ . A. not change; the economic growth rate doesn't influence federal government revenues B. increase; taxable incomes would rise and tax payments would increase C. decrease; the government would lower the tax rates D. increase; the government would earn more interest
Canadian real GDP unexpectedly accelerated to a 4.5 percent pace in the second quarter of 2017. This faster-than-expected growth was the fastest among Group of Seven countries. It was led by the biggest rise in household spending since before the 2008–2009 global recession.
How would an unexpected increase in the
A. decrease; government expenditure on goods and services would fall
B. decrease; transfer payments such as
C. increase; debt interest would increase
D. not change; the economic growth rate doesn't influence federal government outlays
How would an unexpected increase in the economic growth rate influence federal government revenues? Federal government revenues would ______ because ______ .
A. not change; the economic growth rate doesn't influence federal government revenues
B. increase; taxable incomes would rise and tax payments would increase
C. decrease; the government would lower the tax rates
D. increase; the government would earn more interest
Step by step
Solved in 3 steps
