Increases in Government Spending Result in ________ in the Short

question 257

Multiple Choice

Increases in government spending result in ________ in the short run, and permanent increases in government spending result in ________ in the long run.

• A)partial crowding out; partial crowding out
• B)partial crowding out; complete crowding out
• C)complete crowding out; complete crowding out
• D)complete crowding out; partial crowding out
• E)no crowding out; complete crowding out

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Definitions:

Gift Tax

A levy imposed on the act of transferring property from one person to another without receiving full value or any compensation in return.

Purchase Price

The amount of money paid to buy a good, service, or asset; fundamental in calculating the basis for investment or tax purposes.

Capital Loss Deduction

A tax deduction that allows individuals to offset their capital gains with any losses they incurred on investments in a given tax year.

Carryover

Unused tax credits or deductions that can be applied to future tax years to reduce tax liability.