Many economists who would normally argue against government spending increases due to "crowding out" were in favour of the large economic stimulus announced in 2009.Why would these economists change their mind?

Question

Quizplus · Accepted Answer

During recessions, interest rates are usually low and prices are falling. This makes it less likely for crowding out to occur, as there are more borrowing opportunities available and less inflationary pressure from increased government spending. Therefore, economists who normally argue against government spending increases due to crowding out may have changed their mind in 2009 due to the unique circumstances of the recession.

Many Economists Who Would Normally Argue Against Government Spending Increases