If the crowding-out effect is large,then when government spending increases

Name: If the crowding-out effect is large,then when government spending increases
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The crowding-out effect refers to the reduction in private investment that occurs when government spending increases, as a result of increased competition for resources in the market. This means that private investment may decrease, which can lead to a lower level of economic growth and, therefore, a smaller increase in national income.

If the Crowding-Out Effect Is Large,then When Government Spending Increases