The Crowding Out Effect Is Often Associated with

question 193

Multiple Choice

The crowding out effect is often associated with

• A)a temporary 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:

Atomic

Relating to atoms, the smallest component of an element having the chemical properties of the element.

Truth-functional Compound

A compound statement in logic whose truth value is determined by the truth values of its components.

Quantifier

A symbol in logic that indicates how many examples within a discussion domain meet the criteria of an unfilled equation.

Atomic Open Sentence

A sentence expressing a basic proposition that includes variables, which, when replaced by specific terms, becomes an atomic sentence.