5. The crowding-out effect of expansionary fiscal policy suggests that: * O Imports replace domestic production Government spending increases at the expense of private investment. Private investment increases at the expense of government spending. Saving increases at the expense of investment. 6. In 2007, the city of Miketown collected $250,000 in taxes and spent $350,000. In 2007, the city of Miketown had a * Budget deficit of $200,000. Budget surplus of $100,000. Budget deficit of $100,000. O Budget surplus of 57%.