Topier Crowding Out 7. How does crowding out of fect real interest rates? 8. How does crowding out of fect private investment spending? 9. How does crowding out affect long-term economic growth? 10. How does crowding out affect the production possibilities frontier model? Topic: Demand for Loanable Funds - For each of the following, identify the graph that matches the scenario. 11. The government is running a budget deficit. 12. The government offers tax credits for new home purchases, 13. Policy is created to reduce the sales Graph A Graph & tax. 14, Tax credits are offered on capital investments for businesses. 15. A deep recession occurs, Topic: Supply of Loanable Funds - For each of the following, identify the graph that matches the scenario, Graph A canibe Farhi 16. The government is running a budget deficit. 17. The government is running a budget surplus. 18. Policy is created to reduce the tax on investment income