Crowding out is the _____ in private spending that occurs when government _____ spending.
A) increase;increases
B) increase;decreases
C) decrease;increases
D) decrease;decreases

Question

Quizplus · Accepted Answer

Crowding out is the decrease in private spending that occurs when government increases spending, often due to higher interest rates or the government borrowing more, which can lead to less investment by the private sector.

Crowding Out Is the _____ in Private Spending That Occurs