Under the classical closed-economy long-run growth model, increased government spending crowds out private investment by affecting the real interest rate. Identify the key assumptions that drive this conclusion, and suggest possible circumstances in which this conclusion does not hold (i.e. government spending doesn't crowd out investment or only does so partially). Which scenario do you feel is more likely (crowd out or not) and why? Identify at least one plausible reason why the opposite might be true as well