Crowding Out Is a Drop in Consumption or Investment Spending

question 135

True/False

Crowding out is a drop in consumption or investment spending caused by government spending.

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Definitions:

Upkeep

The process of maintaining or preserving someone or something, or the cost involved in maintaining a property, equipment, etc.

Depreciation Tax Shield

A reduction in taxable income for businesses that results from the allowance for depreciation expenses.

CCA Class

Stands for Capital Cost Allowance Class, which is a categorization used in Canadian tax law for the purpose of calculating depreciation for tax purposes.

Borrowed Money

Funds that are loaned to an individual or business with an obligation to repay the amount plus interest.