All Else Constant,an Increase in the Amount of Borrowing by the Federal

question 47

True/False

All else constant,an increase in the amount of borrowing by the federal government would reduce the amount of money available for businesses to borrow to finance investment spending.

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Definitions:

Output Tax

A tax levied on the quantity of production or output generated by a company, as opposed to income or profit.

Perfectly Elastic

An economic term describing a situation where the quantity demanded or supplied changes infinitely in response to any change in price.

Increasing-Cost Industry

Industry whose long-run supply curve is upward sloping.

Output Tax

A tax levied on the production or output of goods and services, often implemented to regulate or diminish the production of certain products.