Crowding out is an example of

Name: Crowding out is an example of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Crowding out is an example of opportunity cost, as it involves the trade-off between government spending and private investment. When the government increases its spending, it may lead to a decrease in private investment, as resources are diverted to financing government projects instead of being available for private businesses. This represents the opportunity cost of increased government expenditure on private investment.

Crowding Out Is an Example of