Which Piece of Evidence Is Consistent with Zero Crowding Out

question 41

Multiple Choice

Which piece of evidence is consistent with zero crowding out?

• A) Government purchases rise and Real GDP does not change.
• B) Government purchases rise and investment spending declines.
• C) Government purchases rise and net exports decline.
• D) Government purchases rise and consumption declines.
• E) none of the above

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Definitions:

Unemployment Compensation

Financial payments made to individuals who have lost their jobs through no fault of their own, provided by state or federal unemployment insurance programs.

Form 1099-G

Form 1099-G is a tax form used to report certain types of government payments, such as state tax refunds and unemployment compensation, to recipients and the IRS.

Income Tax Regulation

Rules and guidelines by the government that dictate how income taxes must be calculated, filed, and paid.

Reg.§1.162-5

A regulation stipulating that certain educational expenses are deductible as a business expense.