Posted by Amy on .
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.