The Crowding Out Effect Refers to

question 182

Multiple Choice

The crowding out effect refers to

• A) a permanent increase in taxes.
• B) an increase in the interest rate caused by government borrowing.
• C) the reinforcing impact of state and local tax changes on federal tax changes.
• D) the impact of a tax rate increase when the aggregate supply function is horizontal.

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Definitions:

Functional Analysis

A set of procedures used in FBA to analyze contextual variables, primarily focusing on consequences to reduce students’ problem behaviors. It is also used to describe the second stage of FBA, testing hypotheses.

Functional Assessment

A detailed investigation into the factors contributing to problematic behaviors, leading to targeted interventions for improvement.

Conditioned Stimuli

In classical conditioning, a previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Response

A naturally occurring response to a given stimulus without prior learning or conditioning.