Problem
1. What do you understand by the term 'crowding-out' and when is it likely to be most prevalent?
2. Under what circumstances might a progressive tax be more desirable than a proportional or regressive one? Give examples from your own economy of progressive, proportional and regressive taxes.
3. What is 'fiscal drag'? How might its economic effects be neutralised?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.