Tax-free loans to Canadian students are an example of

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Tax-free loans to Canadian students are an example of subsidies for merit goods. Merit goods are goods that have positive externalities, meaning their consumption benefits not only the individual consumer but society as a whole. Education is considered a merit good as an educated individual has positive effects on society, such as increased productivity and civic engagement. By providing tax-free loans to students, the government is subsidizing the consumption of education and encouraging more individuals to pursue higher education, which is a positive step towards the overall betterment of society.

Tax-Free Loans to Canadian Students Are an Example of