Homework Help: Econ

Posted by Amy on Monday, November 6, 2006 at 12:16am.

The crowding-out effect arises when:
a. govt borrows in the $ market, thus increase % rates and the net investment spending in the economy
b. govt borrows in the $ market, thus increasing % rates and decreasing investment spending
c. the progressivity of the tax system increases, thus decreasing the % rates and increasing investment spending
d. the progressivity of the tax system decreases, thus decreasing % rates and net investmnet spending

take a shot, a little research first.

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