Crowding out refers to a decline in ________ as a result of an increase in ________.

Name: Crowding out refers to a decline in ________ as a result of an increase in ________.
Brand: Quizplus
Rating: 4.7 (48 reviews)

Question

Quizplus · Accepted Answer

Crowding out occurs when increased government spending leads to a reduction in private sector spending. This happens because government borrowing to finance its expenditures can lead to higher interest rates, making it more expensive for the private sector to borrow and invest.

Crowding Out Refers to a Decline in ________ as a Result