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The Canadian Federal Government's System of "Equalization Payments

Question 88

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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.

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