Complete Crowding Out Occurs When an Increase in Government Spending

question 133

True/False

Complete crowding out occurs when an increase in government spending is completely offset by an equal increase in tax revenues.

---

Definitions:

Office Supplies

Items needed for the daily operations of a business, such as pens, paper, and staplers.

Government-Wide Financial Statements

Comprehensive financial reports that present the financial position and results of operations of all governmental activities and entities.

Debt Service Fund

A fund established to account for the accumulation of resources for, and the payment of, long-term debt principal and interest.

General Fund

The primary operating fund of a government, financing a variety of its general activities and services.