Which of the following is the best example of Crowding out?('G'stands 'government spending.)
O If US G increases and this is financed through borrowing from foreign lenders, this tends to cause a depreciation of the $. In turn this causes exports to increase in the short run.
If US government spending on libraries increases,reading will become more popular, and people then will spend more on books
O None of the other options
OThe US G increases, therefore they must increase taxes.
O If US G increases,interest rates rise, thereby causing business investment,I, to decrease.