a. In which instance would "crowding out" likely become a concern? A balanced budget law prevents the government from taking fiscal action during a recession. Prior-year budget surpluses allow the government to use saved funds to reduce taxes. O In order to increase spending on infrastructure, the federal government decides to borrow funds. b. One result of "crowding out," due to fiscal action, is difficulty saving income for future purchases. O making economic investments. O purchasing stocks and other financial investments.
a. In which instance would "crowding out" likely become a concern? A balanced budget law prevents the government from taking fiscal action during a recession. Prior-year budget surpluses allow the government to use saved funds to reduce taxes. O In order to increase spending on infrastructure, the federal government decides to borrow funds. b. One result of "crowding out," due to fiscal action, is difficulty saving income for future purchases. O making economic investments. O purchasing stocks and other financial investments.
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 3P
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