Which of the following statements explains why Argentina had over a 100 percent crowding out during the 1999 to 2002 period?

Question

Quizplus · Accepted Answer

Argentina had over a 100 percent crowding out during the 1999 to 2002 period due to uncertainty and pessimism, which led to a decrease in private investment and an increase in demand for government bonds, thereby increasing interest rates and decreasing private investment further.

Which of the Following Statements Explains Why Argentina Had Over