The Department of Natural Resources spent money to promote the use of national parks as perfect sites for a summer vacation causing motels, campgrounds and other tourist attractions in the private sector to become less attractive to consumers.Consequently consumers spent more money on trips to the national parks and less money in the private sector for their vacations resulting in _____.

Question

Quizplus · Accepted Answer

The correct term is "crowding out," which refers to the phenomenon where increased government spending leads to a reduction in private sector spending. In this scenario, the government's promotion of national parks draws consumers away from private sector options like motels and campgrounds, thereby reducing the private sector's share of consumer spending.

The Department of Natural Resources Spent Money to Promote the Use