Crowding Out

question 233

Multiple Choice

Crowding out:

• A) is the decrease in private spending that occurs when government spending increases.
• B) occurs when people see that lower taxes today means higher taxes in the future,so they quickly spend the tax cut.
• C) is federal government policy on taxes,spending,and borrowing that is designed to influence business fluctuations.
• D) is central bank policy on the monetary base,interest rates,and bank reserves that is designed to influence business fluctuations.

---

Definitions:

E-mail

Electronic mail, a method of exchanging messages between people using electronic devices.

Social Security Offices

Government facilities where individuals can apply for or manage Social Security benefits.

County Tax Rolls

Official records maintained by county governments listing property ownership, assessed values, and applicable property taxes.

Insurance Companies

Organizations that provide coverage, compensating losses or providing protection against risk, in exchange for premium payments.