The Crowding-Out Effect Refers to the Possibility That Deficit Spending

question 7

True/False

The crowding-out effect refers to the possibility that deficit spending may motivate people to increase their saving in anticipation of higher future taxes.

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Definitions:

Tickets

Documents that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.

Price Elasticity

Measures the responsiveness of quantity demanded or supplied of a good to a change in its price, with elasticity types including elastic, inelastic, and unitary.

Demand Function

An equation that describes the relationship between the quantity of a good consumers are willing to buy and the price of the good.

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Documents or electronic vouchers that grant the holder permission to enter a place, travel on a vehicle, or participate in an event.