Complete Crowding-Out Is When Every Dollar of

question 98

Multiple Choice

Complete crowding-out is when every dollar of

• A) government spending crowds out one dollar of tax revenue.
• B) government spending crowds out one dollar of private spending.
• C) private spending crowds out one dollar of government spending.
• D) private spending crowds out one dollar of tax revenue.
• E) tax revenue crowds out one dollar of government spending.

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Definitions:

Marginal Revenue

The augmented income received from selling an extra unit of a good or service.

Total Revenue Curve

The total revenue curve graphically represents the relationship between total revenue gained by a business and the quantity of a product sold, showing how revenue changes as sales volume varies.

Slope

A measure of the steepness or inclination of a line, representing the rate at which variables change relative to each other.

Court Decisions

Official judgments or rulings handed down by a court following a legal proceeding, which establish legal precedent and guide future cases.