Crowding in can be defined as
A)an increase in the budget deficit increases demand so that investment increases.
B)tax incentives on investment encourage capital formation, an increase in aggregate supply.
C)consumption rises in a recovery, which increases demand for investment.
D)the budget deficit falls enough to lower interest rates to stimulate investment.

Question

Quizplus · Accepted Answer

Crowding in occurs when increased government spending leads to an increase in private sector investment, often due to higher demand and economic activity.

Crowding in Can Be Defined as