If a government decides to finance an investment in ________________ with higher taxes or ____________________ in other areas, it need not worry that it is crowding out private investment.
A. roads and bridges; increased borrowing
B. water supply and sewers; by raising capital spending
C. public physical capital; lower government spending
D. hydroelectric dams and windmills; government R&D
Answer:C
If a government decides to finance an investment in ________________ with higher taxes or ____________________ in other areas, it need not worry that it is crowding out private investment.
A. roads and bridges; increased borrowing B. water supply and sewers; by raising capital spending C. public physical capital; lower government spending D. hydroelectric dams and windmills; government R&D
Explanation: Type: Multiple Choice