When a decrease in one or more components of private spending completely offsets the increase in government spending,there is

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Quizplus · Accepted Answer

Crowding out occurs when an increase in government spending leads to a decrease in private spending due to higher interest rates or other factors. When the decrease in private spending completely offsets the increase in government spending, it is considered complete crowding out. Therefore, the best choice is C.

When a Decrease in One or More Components of Private