Which of the Following Statements Is NOT True of Proposition

question 36

Multiple Choice

Which of the following statements is NOT true of Proposition 13?

• A) It did not result in fewer funds for libraries and schools, as opponents claimed it would.
• B) Although proposed by California conservatives, it reflected the growing anti-tax mood of the rest of the nation.
• C) Businesses and homeowners benefited greatly from its passage.
• D) It proved taxation could be a trenchant issue for politicians and American voters.
• E) Many states adopted similar propositions after its passage.

---

Definitions:

Crowding-out Effect

A situation where increased government spending leads to a reduction in private sector investment due to higher interest rates.

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and at a given time.

Consumption

The use of goods and services by households.