Crowding out refers to a decrease in government purchases as a result of an increase in private expenditures.

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Crowding out refers to a decrease in private expenditures as a result of an increase in government purchases. This is because when the government spends more, there is less money available for private investment and consumption, which can lead to higher interest rates and lower levels of economic growth.

Crowding Out Refers to a Decrease in Government Purchases as a Result