The Level of Crowding Out Associated with a Tax Cut

question 298

True/False

The level of crowding out associated with a tax cut will be smaller if the tax change has a supply-side effect than it will be if it only has a demand-side effect.

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Definitions:

Anecdotal Evidence

Information derived from personal accounts, observations, or stories rather than from scientific analysis or hard data.

Statistical Evidence

Information derived from statistical procedures that is used to support or refute an assertion, hypothesis, or claim.

Persuasive Impact

The effect of communication or argumentation in convincing or influencing others to change their beliefs, attitudes, or behaviors.

Dependent Variable

In an experimental study, it is the variable being tested and measured, expected to change as a result of manipulations to the independent variable.