A Tax Increase Has

question 112

Multiple Choice

A tax increase has

• A)a multiplier effect but not a crowding out effect
• B)a crowding out effect but not a multiplier effect
• C)both a crowding out and multiplier effect
• D)neither a multiplier or crowding out effect

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Definitions:

Civil Penalties

Civil penalties are fines or other forms of punishment imposed by a governmental agency for violations of regulatory laws or ordinances, not involving criminal prosecution.

Government Regulation

The act of controlling, directing, or managing activities, industries, or entities by a governing body.

Business Law

A branch of law that deals with the rights, relations, and conduct of individuals and businesses engaged in commerce, merchandising, trade, and sales.

Corporations

Legal entities that are separate from their owners, with the ability to own assets, incur liabilities, and conduct business.