What method of financing government spending leads to the least crowding-out?

Question

Quizplus · Accepted Answer

Money creation leads to the least crowding-out because it does not directly compete with the private sector for financial resources, unlike taxation and selling bonds, which can increase interest rates and reduce private investment. Selling government assets does not directly impact the overall supply of funds available for private investment in the same way.

What Method of Financing Government Spending Leads to the Least