Which of the following is an example of an action where crowding-out could occur? A decrease in government housing subsidies causes an increase in private spending on housing. The government lowers...

Extracted text: Which of the following is an example of an action where crowding-out could occur? A decrease in government housing subsidies causes an increase in private spending on housing. The government lowers taxes, but spending does not increase. The government increases spending but does not increase taxes, and the size of the budget deficit increases. The government invests in education, shifting the long-run aggregate supply curve to the right. The government pays $2 million to workers who have lost their jobs in the form of unemployment compensation.