Which of the following is a case of resource crowding out?
The government builds a new road. The increase
in government demand for cement raises its price, meaning some private companies cannot afford to build new factories.
The economy is in a boom so the government increases corporate profit taxes
The economy is in a slump so the government increases spending on health care
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