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Which Of The Following Is A Case Of Resource Crowding Out?The Government Builds A New Road

The increase


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