Crowding in refers to
A)A reduction in private sector borrowing caused by increased government spending.
B)A reduction in private sector borrowing caused by a reduction in government spending.
C)An increase in private sector borrowing caused by decreased government borrowing.
D)An increase in private sector borrowing caused by increased government borrowing.

Question

Quizplus · Accepted Answer

Crowding in occurs when decreased government borrowing leads to lower interest rates, encouraging more private sector borrowing.

Crowding in Refers to