Crowding in occurs when government spending improves business expectations about the future and leads to higher business investment spending.

Question

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Crowding in is a phenomenon where government spending stimulates private sector investment leading to higher economic growth. This is because increased government spending can lead to an increase in demand for goods and services, thus creating more opportunities for private investment, job creation, and economic growth. As a result, higher business expectations about the future can lead to higher business investment spending.

Crowding in Occurs When Government Spending Improves Business Expectations About