The Canadian government introduced the Tax- Free Savings Account (TFSA) in 2009,which allows Canadians to earn tax- free investment returns on a limited amount of savings each year.What is the underlying goal of such a government policy?
A) to increase government tax revenues
B) to decrease the supply of financial capital to the economy
C) to increase desired saving of Canadian households
D) to maintain upward pressure on the equilibrium interest rate
E) to increase investment demand of Canadian firms
Correct Answer:
Verified
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