Crowding out is the idea that an increase in government spending may cause a reduction in private sector spending.

Name: Crowding out is the idea that an increase in government spending may cause a reduction in private sector spending.
Brand: Quizplus
Rating: 4.7 (53 reviews)

Question

Quizplus · Accepted Answer

When the government increases its spending, it often leads to an increase in interest rates, making borrowing more expensive for businesses and individuals. As a result, the private sector may reduce its spending, leading to crowding out.

Crowding Out Is the Idea That an Increase in Government