________ Imply/implies That, Holding the Present Value of Government Spending

question 71

Multiple Choice

________ imply/implies that, holding the present value of government spending constant, budget deficits will not crowd out investment.

• A) Crowding in
• B) Generational accounting
• C) Ricardian equivalence
• D) Lower interest rates
• E) Lower taxes

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value due to use, wear and tear, or obsolescence.

Disposable Income

The net income available to an individual or household for saving or spending after income taxes have been deducted.

C + I

An abbreviation for "Consumption + Investment," which are components used in calculating gross domestic product (GDP) in the expenditure method.

Disposable Income

Money that households can allocate towards savings and spending after income tax charges.