When Parks Canada spends money on promoting the use of national parks as perfect sites for a summer vacation,then motels,campgrounds,and other tourist attractions in the private sector may become less attractive to consumers.If,as a result of the promotion,consumers spent more money on trips to the national parks and less money in the private sector for their vacations,what would have occurred?
A) deficit spending
B) demarketing
C) crowding out
D) public-sector inflation

Question

Quizplus · Accepted Answer

Crowding out occurs when government spending and investment in a particular industry or sector reduces private sector investment and spending. In this case, Parks Canada's promotion of national parks as vacation destinations could lead to a decrease in spending on private sector tourist attractions, indicating crowding out. The other options, deficit spending, demarketing, and public-sector inflation, are not relevant or applicable in this scenario.

When Parks Canada Spends Money on Promoting the Use of National