The personal income tax is based on the benefits-received principle of taxation

Suppose the government has a budget deficit of $2 billion. If there is no Ricardo-Barro effect, how much crowding out of investment occurs?

A) some crowding out occurs, but less than $2 billion B) more than $2 billion C) exactly equal to $2 billion dollars D) No crowding out occurs and investment does not change. E) No crowding out occurs because investment increases.

Mathematically, elasticity is the percentage change in _____ brought about by a percentage change in _______.

Fill in the blank(s) with the appropriate word(s).