According to Professor Baotai Wang who examined the crowding out phenomenon in Canada between 1961-2000, government expenditures for health and education
A) increased human capital and encouraged private sector investment, leading to crowding in.
B) did not increase the rate of return on private investment and therefore led to crowding out.
C) increased human capital and generated strong supply-side effects.
D) led to only small increases in human capital.
Correct Answer:
Verified
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