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QUESTION

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

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