The Crowding-Out Effect of Fiscal Policy Arises from Deficit Spending

question 351

True/False

The crowding-out effect of fiscal policy arises from deficit spending.

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Definitions:

Dividends

Payments made to shareholders out of a corporation's profits.

Subchapter S Corporation

A form of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

Elect

To choose or decide on a particular option or choice, commonly referring to making tax-related selections on a return.

Net Capital Loss

It's the loss incurred when the total capital losses from investments exceed the total capital gains for a year.