G When crowding-out is occuring when: Multiple Choice the progressivity of the tax system decreases, thus decreasing interest rates and net investment spending. the government borrows to pay for spending, thus increasing interest rates and investment. the government borrows to pay for spending, thus increasing interest rates and decreasing investment. the progressivity of the tax system increases, thus decreasing interest rates and increasing net investment spending.

answer; (10%) commission;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.