Which Is Generally TRUE of the Empirical Evidence on the Crowding-Out

question 34

Multiple Choice

Which is generally TRUE of the empirical evidence on the crowding-out of individual contributions by government spending?

• A) The crowd-out effect is close to zero in both empirical and experimental studies.
• B) The crowd-out effect is approximately 50% in both empirical and experimental studies.
• C) The crowd-out effect is substantially larger in empirical studies than in experimental studies.
• D) The crowd-out effect is substantially smaller in empirical studies than in experimental studies.

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Definitions:

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