Explain Why a Local Bottler of PepsiCo Products Would Likely

question 200

Essay

Explain why a local bottler of PepsiCo products would likely prefer a national soda tax to a local soda tax in its region.

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Definitions:

Balanced Budget Amendment

A proposed federal constitutional rule requiring that the government not spend more than its income in a fiscal year.

Crowding-out Effect

A situation where increased government spending leads to reduced investment in the private sector.

Government Borrowing

The process by which governments finance their expenditures by issuing debt instruments, such as bonds, to the public or borrowing from financial institutions.

Great Recession

A severe global economic downturn that began in 2007 and lasted until 2009, marked by significant declines in financial markets and economic activity worldwide.