The Crowding Out Effect Is Often Associated with

question 193

Multiple Choice

The crowding out effect is often associated with

• A)a temporary increase in taxes.
• B)an increase in the interest rate caused by government borrowing.
• C)the reinforcing impact of state and local tax changes on federal tax changes.
• D)the impact of a tax rate increase when the aggregate supply function is horizontal.

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Definitions:

Linguistic Determinism

A theory suggesting that the language a person speaks determines or greatly influences their mode of thought and behavior.

Linguistic Relativism

The idea that the structure of a language affects its speakers' worldview or cognition.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture, emphasizing the importance of considering cultural context in judgment and analysis.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a disdain for other groups.