The Crowding-Out Effect Suggests That

question 38

Multiple Choice

The crowding-out effect suggests that

• A)expansionary fiscal policy causes inflation.
• B)high marginal tax rates crowd out tax deductions.
• C)the demand stimulus effects of a budget deficit will be weak because the borrowing to finance the deficit will lead to higher interest rates.
• D)a budget surplus will cause the economy to slip into a major recession.

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Definitions:

Work Existence

refers to the aspect of having employment and its significance in an individual's life, often implying the balance between work and other life facets.

Group Will

A collective inclination or determination of a group towards achieving a particular goal or outcome.

Servant Leaders

Leaders who prioritize the needs of their team members and focus on developing and empowering those they lead, often resulting in improved group performance and morale.

Stewards

Individuals or entities responsible for managing and looking after the property, wealth, or affairs of others, often with a focus on ensuring sustainability and prudent use of resources.