The classic definition of crowding out is the:
A) lowering of government's spending programmes.
B) increase in the level of private investment spending.
C) decrease in the equilibrium rate of interest.
D) none of the above.

Question

Quizplus · Accepted Answer

The classic definition of crowding out refers to a situation where increased government spending leads to a reduction in private sector investment due to higher interest rates, which is not explicitly mentioned in any of the provided options.

The Classic Definition of Crowding Out Is The