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Map pling Learning In the graphs below, D is the demand curve, $1 is the supply curve if firms only consider private costs (not pollution) in production decisions, and $2 is the supply curve if all costs (production costs and pollution costs) are considered. These curves represent the plastic production industry. Price Quantity On the left graph (above), move $2 to a location For the right graph (above), assume that plastic production that is consistent with the production of plastic does not generate pollution or any other type of externalily. generating air pollution. Move S2 to a location that is consistent with the assumption of no externality. Hini Q)Previous @ Give Up & View Solution () Chuck Answer () Next 4 Exit partners privacy policy Arms of use contact us 26 MacBo esc FI FZ 20 F3 DOO F4 F5Deficit spending is most associated with O contractionary fiscal policy expansionary fiscal policy expansionary monetary policy O contractionary monetary policy Opponents of deficit spending argue that a portion of the desired economic effect will be crowded-in due to lower interest rates crowded-in due to higher interest rates OOOO crowded-out due to higher interest rates crowded-out due to lower interest rates What does crowding out describe? O Increased consumption and investment spending causing government spending to increase. O Increased consumption and investment spending causing government spending to decline. O Increased government spending causing consumption and investment to increase. O Increased government spending causing consumption and investment to decline