A Tax Increase Has

question 112

Multiple Choice

A tax increase has

• A)a multiplier effect but not a crowding out effect
• B)a crowding out effect but not a multiplier effect
• C)both a crowding out and multiplier effect
• D)neither a multiplier or crowding out effect

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Definitions:

Creativity

The ability to produce original and valuable ideas, involving imagination and the generation of new solutions to problems.

Venturesome Personality

A personality type characterized by a willingness to take risks and try new experiences.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often aimed at tapping into one's creativity and innovation.

Convergent Thinking

Narrowing the available problem solutions to determine the single best solution.