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Which of the following options exemplifies financial crowding out? The economy is in a slump, so the government increases spending on solar panels. The government
Which of the following options exemplifies financial crowding out? The economy is in a slump, so the government increases spending on solar panels. The government builds a new building. The increase in government demand for bricks raises its price, meaning some private companies cannot afford to build new factories. The economy is in a slump, so the government decreases personal income taxes. The government borrows to finance debt, therefore placing upward pressure on interest rates. The government builds a new road, making it cheaper for private businesses to transport its goods
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