The "Crowding-Out" Critique Is Based on the Idea That

question 105

Multiple Choice

The "crowding-out" critique is based on the idea that

• A) consumption increases when government spending increases.
• B) government spending may be a substitute for private spending.
• C) time lags crowd out the effects of fiscal policy.
• D) supply-side fiscal policy does not increase total output.
• E) increases in government spending and decreases in taxes are offset by increases in savings.

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Definitions:

Depreciation Expense

A technique in accounting that involves spreading out the expense of a physical asset over its expected lifespan.

Depreciation Expense

The allocated cost of an asset over its useful life as an expense in accounting.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been depreciated over the time it has been in use.